9911796707
TMI Blog1973 (2) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... n relation to his vast transactions relating to imports and exports which he effected under valid licences held by him for the purpose. The petitioner ushered in a return after proceedings were initiated against him by the assessing authority under section 12(2) of the Act. As there were no account books which could be compared with the return so filed by the petitioner, the assessing authority gave the petitioner enough opportunity to sustain his return, or suffer a best judgment assessment. The petitioner is not complaining in this writ petition that he had no fair or full opportunity to explain his dealing in the year under review. As a matter of fact, his case is that during the enquiry by the assessing officer in the proceedings undert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were Initiated to assess the petitioner on the best judgment method and, to that extent, there was a wilful default on the part of the petitioner and that that situation had to be taken note of. The Appellate Tribunal also expressed the view that, In view of the gravity of the offence, that the details of the petitioner's huge transactions had not at all been placed before the department for verification, especially when the goods concerned were imported under the import licences granted by the Government of India, the adoption of the best judgment method and the subsequent imposition of penalty were both justified in the eye of law. It is as against this, the present writ petition has been filed. The contention of the learned counsel fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nother Division Bench of our High Court in Meiyappan v. Commissioner of Commercial Taxes[1967] 20 S.T.C. 115., while maintaining the distinction between section 16(2) and section 12(3) of the Act, added that even in the case covered by section 12(3) of the Act, a deliberate non-disclosure was really contemplated, Obviously, the learned Judges were of the view that the record in a particular case should be in a position to present a picture that the circumstances were so revealing that what prompted the assessing authority to invoke section 12(3) was a deliberate non-disclosure of the accounts. Each case therefore has to be decided on its own merits. In the instant case, I have referred to the findings of the assessing authority as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his return. The second compartment is that in the case of failure to submit a return he could be directed to pay 1 times the tax assessed. In the former case, a return which has been accepted, or at least acceptable by the department is available. In the latter case, there is no such return at all. The expression "failure to submit a return" in the latter compartment of section 12(3) obviously would include a case where a wilful wrong return has been filed and that with an amount of deliberateness and wantonness. In a case where the record as well as the findings of the courts below disclose that there has been a deliberate departure from the process adoptable normally by an assessee and in consequence the reasonable impression is that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances, I am unable to agree with the contention of the learned counsel for the petitioner that the yardstick as to penalty adopted by the authorities is incorrect and inapplicable. Having regard to the fact that there were no accounts and the return was submitted at a time when almost a decision was made by the authorities to assess him on the best judgment method and when the petitioner did not avail himself of every opportunity to prove his return, the proposal made by the department in their notice to assess him under the best judgment basis under section 12(2) was quite in order; again, as ultimately the authorities found that the assessee was a person who willy-nilly attempted to avoid and evade the payment of tax, I am of the view th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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