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TMI Blog1978 (1) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... the khatha extracts showing the transactions they had with the petitioner. Subsequent to the inspection, the petitioner filed its returns in respect of each of the years in form A-1, showing the turnover in respect of each of the years. The turnover shown by the petitioner in respect of each of the years was what was detected by the Special Commercial Tax Officer at the time of the inspection. In this connection, we may notice the assessment order for the year 1968-69. The gross turnover returned by the assessee was Rs. 17,239.57. The assessee did not claim any exemption and, therefore, that was shown as the net turnover. A notice was issued to the dealer to produce accounts for that year other than those that were already before the assessing officer. He did not file any accounts on the ground that he had no other accounts to be filed. So, on the basis of the verification of the slips, etc., and the return filed for that year by the assessee, the Deputy Commercial Tax Officer observed in his order thus: "The turnover reported by him in the A-1 return which was filed after detection of the material has agreed with the turnover in the detected material. The turnover for the year 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within a period of four years from the expiry of the year to which the assessment relates. (1-A) Where the return submitted by a dealer includes the turnover or any of the particulars thereof which would not have been disclosed but for an inspection of accounts, registers or other documents of the dealer made by an officer authorised under this Act before the submission of such return, the assessing authority may, after giving an opportunity to the dealer for making a representation in this behalf, treat such return to be an incorrect or incomplete return within the meaning of sub-section (1) and proceed to take action on that basis. (2) * * * (3) Where any dealer liable to tax under this Act- (i) fails to submit return before the date prescribed in that behalf, or (ii) produces the accounts, registers and other documents after inspection, or (iii) submits a return subsequent to the date of inspection, the assessing authority may, at any time within a period of six years from the expiry of the year to which assessment relates, after issuing a notice to the dealer and after making such inquiry as he considers necessary, assess to the best of his judgment, the amount of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 14 and rule 15 provide situation for making best judgment assessment by an assessing authority. Section 13 enjoins on every dealer, who is liable to tax, to submit returns in respect of his turnover in the manner prescribed. Admittedly, no such return, as required under section 13 or under the Rules prescribed, was filed by the petitioner in any one of the years. Section 14(1), therefore, is not applicable to the case of the petitioner. Section 14(1) deals with a situation of assessment to best judgment when a return filed by a dealer is incomplete or incorrect. It also prescribes the period of limitation for exercising the power to make a best judgment assessment. Sub-section (1-A) is also not applicable to the returns filed for the years other than the return submitted for 1973-74; and, therefore, T.R.C. No. 29 of 1977 shall be considered separately. So, the relevant section is section 14(3). Admittedly, the dealer failed to submit return before the date prescribed in this behalf. But, the best judgment assessment has not been made for the reason that the dealer had failed to submit a return before the prescribed date. The assessment is also not made for failure to produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to and followed by the Supreme Court in State of Madras v. Jayaraj Nadar Sons[1971] 28 S.T.C. 700 (S.C.).The learned judges have categorically stated that where account books are accepted along with other records, there can be no ground for making a best judgment assessment. The impugned orders of assessment are tell-tale. They show that the Deputy Commercial Tax Officer had agreed with the turnover shown by the petitioner in respect of the assessment years 1967-68 to 1972-73. That means he had accepted the returns and he had not taken into consideration the concealment of the accounts and the discovery of the secret accounts maintained by the assessee. Section 14(3) entitles a dealer to submit return subsequent to the date of inspection. The assessee in this case was clever enough to show in the return all the transactions noted in the secret accounts and slips. That means the assessing authority accepted those returns as correct and complete. It is for that reason that he had not chosen to add any turnover. The Madras High Court in Ramakutty Nadar v. State of Madras [1973] 31 S.T.C. 44. and Egberts India (P.) Ltd. v. State of Madras[1973] 31 S.T.C. 569. has taken the vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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