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TMI Blog1963 (3) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... ions arise: (1) Whether the assessment of the applicant for the year 1949-50 can be said to be barred by limitation on the ground that the notice of demand was issued to the applicant after the expiry of three years from the end of the assessment year? (2) Whether the assessment of the applicant on a turnover of Rs. 2,00,000 could be made on the materials on the record? The statement has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he statement of the case. Section 21 provides for a period of limitation only for the making of an assessment order. The Act does not contain any provision regarding a notice of demand to be served upon an assessee after passing an assessment order against him and consequently does not contain any provision prescribing a limitation within which such a notice can be served upon him. The State Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been given before the expiry of three years but this contention is not supported by any law whatsoever. If an assessment order itself can be made up to the last day of the period of three years, it stands to reason that a notice of demand which is to follow it can be given even after the expiry of three years. We were referred to the case of Commissioner of Income-tax, Bombay v. Khemchand Ram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness carried on in 1950-51 was a new business and that his conduct was dishonest. These facts could sustain a finding that its turnover in 1949-50 was Rs. 2,00,000. Best judgment assessment has to be by inference and if there is some material to justify the inference it must be maintained. In this case there was sufficient material to justify the inference that the assessee's turnover for 1949- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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