9911796707
TMI Blog1983 (2) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... p in appeal to the Sales Tax Appellate Tribunal, which, while confirming the assessment, reduced the penalty in each case to fifty per cent of the tax due on the turnovers assessed. Aggrieved against the said order of the Tribunal, the present tax revision cases have been filed. Before us the assessee questions not only the validity of the assessment, but also the propriety of the levy of penalty. According to the learned counsel for the assessee, the turnovers in dispute for both the assessment years relate to the sale of cranes, which had become unserviceable, that the sale was not effected in the regular course of business, that therefore the principle laid down by the Supreme Court in the case of Burmah Shell Oil Storage and Distrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el then contends that, in any event, the levy of penalty is neither legal nor proper. According to the learned counsel, the assessment in this case is not a best judgment assessment, as the assessment was based on a letter given by the assessee showing the turnovers in question and on the figures furnished by the assessee. It is seen from the records that the assessee did not file any return at all. Only in the course of investigation and verification of the accounts of one M/s. Ranga Structurals it was found that the assessee had effected sales of discarded items to the extent of turnovers in question, and when an enquiry was made in respect of the turnovers in question, the assessee furnished details of the sales effected during the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore any assessment made under either of the two contingencies mentioned above will have to be taken as a best judgment assessment. When the section itself refers to the assessment made under either of the two contingencies as a best judgment assessment, we will not be justified in interpreting the expression "best judgment assessment" with reference to the general principle bearing on the question as to when an assessment can be said to be based on best judgment. Even though the assessment in this case may be based on the figures furnished by the assessee, so long as no return was submitted by the assessee under section 12(1), the assessment made by the assessing authority is one made under section 12(2) which is referred to therein a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a fide impression that the turnover in question were not taxable and it was only under that bona fide impression the assessee did not file the return. As already stated, the assessee did not file the return offering the turnover for assessment. It was only during investigation of third party's accounts that the sales effected by the assessee in favour of third parties were detected and it was at that stage that the assessee furnished details of the sales. No doubt section 12(3) contemplates wilful non-disclosure of the turnover by the dealer in his return and wilful failure to submit the return. But admittedly in this case there was non-submission of the return. Even if the non-submission of the return is viewed as a bona fide mistake, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
