9911796707
TMI Blog2006 (3) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... filed this original petition because the matter involves interpretation of scope of section 7(1)(a). In any case after keeping the original petition pending for over five years, there is no justification for this court to send back the petitioner for pursuing statutory remedy. In the circumstances, I proceed to decide the case on merits. I heard counsel appearing for the petitioner, and Government Pleader appearing for the respondents. Since the issue involved is scope of section 7(1)(a) of the Act prior to its amendment the said section applicable for the relevant year is extracted hereunder with the proviso introduced with effect from April 1, 1998: 7. Payment of tax at compounded rates. (1) Notwithstanding anything contained in su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the option relates. (This proviso introduced with effect from April 1, 1998). The petitioner admittedly commenced business on November 27, 1995, that is, during the fag end of the financial year 1995-96. However, the petitioner applied for payment of tax at compounded rate for 1996-97 at 150 per cent of the tax payable during the previous year, i.e., 1995-96 as provided under section 7(1)(a) of the Act. It is seen from exhibit P1 assessment order that the assessing officer accepted the petitioner's claim and completed assessment for 1996-97 by taking the average daily tax liability for the 125 days' business carried on for the year 1995-96 and then by multiplying it by 365. The Deputy Commissioner, however, vide exhibit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplied for the benefit is 150 per cent of the maximum amount of tax payable by him for the period of 12 months in a financial year as stated in the return or accounts in any of the three financial years immediately preceding the assessment year. In other words, the tax payable by the petitioner under compounding system for a year is 150 per cent of the tax payable by him in any of the three financial year immediately preceding the relevant assessment year. This pre-supposes that the dealer should have carried on business during three financial years immediately preceding the year for which the benefit of compounding is claimed. The first proviso to the section only says that if a dealer has not carried on business for any period in a financ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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