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TMI Blog1977 (6) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... materials to the sister concerns were not supported by usual sale bills. They were not also recorded as sales. The assessing authority, therefore, considered that these transactions were undisclosed sales and he added a sum of Rs. 19,367.92 being twice the amount of Rs. 9,683.96 on the ground that to the extent of the amount equal to the supplies made to Messrs. Devi Cine Projector Manufacturing Company, there were probable omissions. The assessing authority levied penalty also, for the failure of the assessee to disclose the said transactions in the returns. The penalty so levied came to Rs. 2,178. The assessee disputed this addition as well as the levy of penalty before the Appellate Assistant Commissioner. The Appellate Assistant Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l rate of tax at 2 per cent under section 3(3) on a sum of Rs. 8,177.90. As regards the penalty, in the view of the Tribunal, the amounts had been duly entered in the regular books and, therefore, the penalty was not liable to be levied. The State has challenged this order of the Sales Tax Appellate Tribunal. We shall first consider the question as to whether the Tribunal was justified in holding that the sum of Rs. 8,177.90 was eligible for the concessional rate of tax at 2 per cent. Section 3(3) provides that notwithstanding anything contained in sub-section (1) or sub-section (2), the tax payable by a dealer in respect of any sale of goods mentioned in the First Schedule by such dealer to another for use by the latter as component part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be filed within a prescribed time and that a time-limit could not be prescribed under the rule-making power of the Government. It would, therefore, follow that the time-limit prescribed under rule 22(5) will not stand in the way of the receipt of these certificates at any later stage. On the facts, we are satisfied that the filing of the certificates before the Appellate Assistant Commissioner cannot be taken exception to because the assessee was under the bona fide impression that the said sales were not liable to tax at all, but they were filed when the alternative contention was taken. There is nothing wrong in taking them into account. When once the certificates are taken into account, then the benefit of the concessional rate of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessing authority included them in the dealer's turnover. The Supreme Court pointed out that penalty could be levied under section 12(3) on the ground that the dealer has submitted an incomplete or incorrect return only if the assessment had to be made to the best of his judgment by the assessing authority and where certain items which are not included in the turnover are discovered from the dealer's own account books and the assessing authority includes those items in the dealer's turnover, the assessment cannot be regarded as based on best judgment and penalty cannot be levied in respect of such items. It was also pointed out that where account books are accepted along with other records, there can be no grounds for making a best j ..... X X X X Extracts X X X X X X X X Extracts X X X X
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