9911796707
TMI Blog1967 (10) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... is notice dated December 28, 1966, to determine the taxable turnover by best judgment at a certain figure and to levy tax at different rates on different items of turnover specified in the notice. It appears that by then the assessing officer had called upon the petitioner to produce accounts and for that purpose granted at its request several adjournments, but finally, he declined to give time beyond December 15, 1966. The explanation for filing the return belatedly was that the petitioner had to receive figures from various places of business and compile the same to fill in the return. The Joint Commercial Tax Officer made an assessment by an order dated January 4, 1967, by applying his best judgment. He thought that the return filed befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, though belatedly, the assessing officer is at liberty to ignore it and still apply his best judgment. Such a procedure will be wholly unrealistic and unrelated to the task of finding out the true net chargeable turnover which is the object of section 12. Though the jurisdiction to assess by best judgment may arise in the event of an assessee failing to file his return within the prescribed time, nevertheless, the return filed belatedly is bound to be considered by the assessing officer in making the assessment. It necessarily follows from this proposition that he has to look into the return and if he feels that it is incomplete or incorrect, he has to follow the procedure prescribed by the proviso to sub-section (2) and give an opportuni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisional returns. No doubt this is not a case of provisional returns, but all the same, the principle of this judgment applies. The very concept of best judgment presupposes the absence of a return, or a return which is incorrect or incomplete. The return submitted cannot, as we mentioned, be ignored if it is filed before the assessment order is made, only on the ground that it has been belatedly filed. On that view of the matter, the propriety of the levy of penalty does not arise for it should fall with the main order of assessment. The order of assessment is quashed and the petition is allowed. The assessing officer will, however, be at liberty to proceed with the assessment having due regard to the return filed. No costs. Petition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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