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TMI Blog1956 (2) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... the plaintiff. An appeal was preferred to the Commercial Tax Officer who issued a notice to the plaintiff as required under the rules and enhanced the turnover to Rs. 90,000 and assessed him on that figure. The plaintiff preferred a revision to the Board of Revenue which was rejected. The order of the Commercial Tax Officer dated 16th March, 1950, was attacked as being ultra vires and null and void. The trial court accepted the contention of the plaintiff and granted the declaration. In appeal the learned Subordinate judge found that it was within the competence of the Commercial Tax Officer by virtue of the power vested in him under the Act and the rules, to revise the assessment and such an order therefore was not liable to be challenged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority or officer has exercised its or his powers under the sub-section. Rule 14 enumerates the authorities who are competent to exercise the powers of revision under section 12(1). Under rule 14, the Deputy Commissioner of Commercial Taxes and the Commercial Tax Officer have been authorised to exercise the powers of the nature referred to in section 12(1). Rule 14A provides: "Where the tax as determined by the initial assessing authority appears to the appellate or revising authority to be less than the correct amount of the tax payable by the dealer, the appellate or revising authority shall, before passing orders, determine the correct amount of tax payable by the dealer after issuing a notice to the dealer and after making such enquiry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and suppression of accounts with a view to escape assessment, the books are incorrect, incomplete and unreliable, and revised the turnover to Rs. 90,000 from Rs. 81,300 which was the figure arrived at by the Deputy Commercial Tax Officer. The decision in Ramachandra Rao v. State of Madras(1) (1) (1954) 2 M.L.J. 148; 5 S.T.C. 325. was referred to in support of the contention that the appellate authority has no power to increase the quantum of the turnover in appeal by the assessee; in that case the appeal was to the Appellate Tribunal. This would not help the appellant since the Commercial Tax Officer has exercised the powers of revision under section 12(1) though such powers of revision were exercised in the appeal preferred by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and on the material that was placed before him and after hearing the assessee the order that is now attacked has been passed. The meaning of the words "legality and propriety" has been the subject of various decisions and the principle is that where the discretion is vested with the authorities exercising the powers of revision, such discretion could not be arbitrary but should be sound and reasonable, guided by judicial principles. It has been held that the meaning of the word "proper" would be "reasonable" and if an order is reasonable and honestly passed on the material that was available and placed before the authority and after notice to the dealer and after giving him an opportunity to explain and adduce evidence, it could not be said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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