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TMI Blog1962 (2) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessing authority in Forms A-3 and A-9. Subsequently he was adjudged an insolvent and his estate vested in the Official Receiver who took possession of his assets along with his records. Against the order of assessment passed by the Original Authority, the assessee preferred an appeal to the Deputy Commissioner (Appeals), Kurnool. While disposing of the appeal, the Deputy Commissioner called upon the assessee to produce his accounts. The assessee referred the Appellate Authority to the Official Receiver. On the basis of the accounts produced by the Official Receiver, the assessee was allowed rebate by deduction of the purchase value of the groundnut and kernel calculated on the sale value of the groundnut oil for the period from 19th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Generally the amount for which the goods are sold by a dealer constitutes his gross turnover. But in the case of certain specified goods, such as groundnut, tax is levied on the purchase turnover. Any dealer who manufactures groundnut oil and cake from groundnut or groundnut kernel purchased by him may register himself as a manufacturer of groundnut oil and cake. Such manufacturer is entitled to a deduction from his gross turnover of an amount equal to the value of the groundnut and (or) kernel purchased and converted by him into oil and cake, provided that the amount for which the oil is sold is included in his turnover and subject to the conditions specified in rule 18. Normally the manufacturer of groundnut oil and cake who sells them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vious month. This is to enable the assessing authority to allow deduction or to fix the amount thereof under rule 18(2). The assessee for reasons of convenience adopted, as he was entitled to under the Madras General Sales Tax Act, a system of payment of tax on provisional assessment based on returns submitted by him in Form A-3 showing the gross and net turnover for the preceding month and the amount or amounts actually collected by him by way of tax or taxes during that month. The return so filed is provisionally accepted by the assessing authority. After the close of the year in which the provisional assessment as laid down in sub-rule (3) has been made, the assessing authority shall, after such scrutiny of the accounts and after such en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority after a scrutiny of the accounts and after the authority is satisfied that they are correct and complete. If the argument of the learned counsel is to be accepted, it would mean that in the case of a dealer submitting monthly returns, the assessing authority will not be entitled to scrutinise his accounts, whereas in the case of a dealer submitting annual returns, he would be under a duty to satisfy the authority with regard to the correctness of his accounts. We do not think that the filing of the A-3 returns would absolve the assessee from producing his accounts. The provisional assessment on the basis of the monthly returns is designed for the benefit of the dealer and there is no obligation on his part to opt out to this system ..... X X X X Extracts X X X X X X X X Extracts X X X X
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