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TMI Blog1968 (4) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... relates. The State of Andhra Pradesh is the petitioner in all these revision cases. The respondents are businessmen belonging to East Godavari and Cuddapah districts. They are dealers in a variety of businesses like fancy goods, ghee, pulses, etc. The assessing authority detected some suppressions in their turnovers and made best judgment assessments under sections 14(1) against them. In addition, he also commenced penalty proceedings under section 14(2). It is common case between the parties that such penalty proceedings were commenced after the lapse of 4 years from the expiry of the year to which the best judgment assessments related. The respondents preferred appeals to the Assistant Commissioner (C. T.) against the proceedings of pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to which the assessment relates. (2) When making an assessment to the best of judgment under subsection (1), the assessing authority may also direct the dealer to pay in addition to the tax assessed, a penalty not exceeding one and a half times the tax due on the turnover that was not disclosed by the dealer in his return ..... Provided that before issuing any direction for the payment of any penalty under sub-section (2), sub-section (3) or sub-section (4), the assessing authority shall give the dealer a reasonable opportunity to explain the omission to disclose the information, and make such inquiry as he considers necessary." The section was recast by the amending Act 16 of 1963. In so far as it is relevant to the present case it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in his return. It is important to note that sub-section (2) makes it clear that the assessing authority could do so only "when making an assessment to the best of judgment under sub-section (1)". Significantly, sub-section (2) starts with the very words "when making an assessment, to the best of judgment under sub-section (1)" thus creating a nexus between the best judgment assessment made under sub-section (1) with the penalty proceeding under sub-section (2). The word "also" occurring in sub-section (2)"the assessing authority may also direct the dealer to pay in addition to the tax assessed a penalty"-further reinforces our view. Thus, the issuance of the direction by the assessing authority to the dealer to pay penalty is clearly linke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upport of his contention that there is no time-limit prescribed for starting penalty proceedings. But the decision is no authority for any such proposition. The only question that was raised before it was that the levy of penalty should be simultaneous with making the best judgment assessment under section 14(1). This contention was rejected by the Division Bench. It was not necessary for it to consider whether the starting of the penalty proceedings should or should not be within the same period as for making the best judgment assessment. This decision does not, therefore, render any assistance to the contention of the Government. It is not necessary in this case to consider whether the penalty proceedings should also be completed within ..... X X X X Extracts X X X X X X X X Extracts X X X X
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