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TMI Blog1971 (9) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... a dealer in motor cars, trucks, scooters, motor spare parts and certain other goods. He returned a turnover of Rs. 42,09,912.12 for the assessment year 1961-62. The Commercial Tax Officer on scrutiny of accounts determined the turnover at Rs. 68,06,331.49. During the assessment proceedings it was found that the assessee had not included in the monthly return in Form A-2, three items of turnover. The first was a sum of Rs. 1,95,311.21 relating to delivery charges which the assessee had paid to certain Calcutta dealers from whom he had made purchases of cars, trucks, scooters etc. The second item was of Rs. 2,21,247.97 which related to the sales of motor parts. The third item was of Rs. 1,56,539.25 being the aggregate of the sale proceeds of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the Board of Revenue to the Madras High Court. The High Court allowed the appeal so far as the first and third items were concerned. As regards the second item it decided against the assessee. Section 12(2) of the Act is in the following terms: "If no return is submitted by the dealer under sub-section (1) within the prescribed period, or if the return submitted by him appears to the assessing authority to be incomplete or incorrect, the assessing authority shall, after making such enquiry as it may consider necessary, assess the dealer to the best of its judgment: Provided that before taking action under this sub-section the dealer shall be given a reasonable opportunity of proving the correctness or completeness of any re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records there can be no ground for making a best judgment assessment. In the present case the High Court found that the turnovers involved in the first and the third items were not determined on the basis of any estimate or best judgment. The quantum of turnovers in respect of both these items were based on the assessee's account books. It has almost been conceded on behalf of the revenue before us that the determination of the turnovers relating to the aforesaid two items was made from the entries in the books of account of the assessee. The true position, therefore, was that certain items which had not been included in the turnover shown in the returns filed by the assessee were discovered from his own account books and the assessing au ..... X X X X Extracts X X X X X X X X Extracts X X X X
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