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TMI Blog1966 (1) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessing Authority was not time-barred?'' The facts giving rise to the aforesaid questions of law are that the petitioners' concern filed returns for all the four quarters of the assessment year 1952-53 before the Assessing Authority, Gurgaon. The Assessing Authority assessed the petitioners' concern to a. sales tax of Rs. 144-7-0 on a taxable turnover of Rs. 4,622-10-3. It was held that the account books of the petitioners' concern had been maintained in the normal course of business and were reliable. When the assessment was made, one of the partners, Shri Manohar Lal, was present. While hearing the petitioners' revision petition for the assessment year 1951-52, the Excise and Taxation Commissioner, Punjab, noticed that the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional Deputy Excise and Taxation Commissioner, the Excise and Taxation Commissioner and the Financial Commissioner have treated the assessment made by the Assessing Authority as ''the best judgment assessment". There can be no dispute in the present case that the assessment was and could only be made under section 11(3) of the Act and not section 11(4), though in both cases, the assessment would be "the best judgment assessment" and the difference would be only of degree. In the case of an assessment under section 11(3) of the Act, the assessment would not be so summary as would be in the case of an assessment under section 11(4) of the Act. In this connection, reference may be made to the decision of the Supreme Court in M/s. Raghubar Mand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d complete, he shall assess the amount of tax due from the dealer on the basis of such returns. (2) If the Assessing Authority is not satisfied without requiring the presence of a registered dealer who furnished the returns or production of evidence that the returns furnished in respect of any period are correct and complete, he shall serve on such dealer a notice in the prescribed manner requiring him, on a date and at a place specified therein, either to attend in person or to produce or cause to be produced any evidence on which such dealer may rely in support of such returns. (3) On the day specified in the notice or as soon afterwards as may be, the Assessing Authority shall, after hearing such evidence as the dealer may produce, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 1,13,231-5-0 shown in the returns. The perusal of the account books further reveal that he has not accounted for the sales made on 6th September, 1952, and 8th September, 1952, to the extent of Rs. 142-14-0 and Rs. 236-0-6 respectively. On a complaint that the dealer keeps double set of account books, one for his personal use and the other for the sales tax and income-tax departments, it was arranged to make test purchases against cash memos for the verification of the account books to be produced. The taxable turnover of the dealer on best judgment basis was fixed at Rs. 40,000 for the year 1951-52 against which the dealer went in appeal. The appellate court upheld the decision of the Assessing Authority and rejected the appeal in toto. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uite enough to discard the book version of the sales of the appellant and also to enhance his returned turnover. This evidence proves to the hilt the tax evasion propensity of the appellant who was complained of anti-social activities of tax evasion. I consider that the estimate of turnover arrived at by the Assessing Authority on the basis of two specific instances quoted above needs no interference by this court.........." Against this order, the assessee went up in revision to the Excise and Taxation Commissioner. The learned Excise and Taxation Commissioner, while rejecting the revision petition, observed as follows: ''...........The next point urged was that the quantum of turnover fixed was excessive. Here too, I am not inclined t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. It will be further seen, as has been mentioned by the Commissioner in his order dated 5th July, 1961, that the Assessing Authority had found on a point of fact that the petitioners were actually not issuing receipts to purchasers. There can be no question regarding the proposition as laid down in the Supreme Court case cited by the learned Advocate for the petitioners, that any assessment on a 'best judgment' cannot be made on mere suspicion, but must be done after proper investigation and on sound reasoning according to relevant facts. The order of the Assessing Authority in the present case dated 17th September, 1956, clearly shows that he duly took into account all the necessary relevant factors, and only then came to his conclusions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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