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TMI Blog1966 (10) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... oner is the lessee of the Imperial Cinema, Madurai. He is the holder of a permit in Form IV, issued under R. 21 of the Madras Entertainment Tax Rules. He was filing returns as required by the provisions of the Madras Entertainment Act, 1939. The returns were accepted, taxes levied and also collected from him by the departmental authorities. While so, during a surprise inspection of the theatre at 10-40 P.M. on 25th September, 1962, the departmental officers seized records such as pocket note-books, diary etc. from the theatre premises. The Officer found from these records that the petitioner had suppressed the true income by sale of tickets during the relevant period. Accordingly, the Officer concerned issued notice calling upon the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch were unearthed at the time of the inspection and that though returns were submitted they were neither correct nor complete and as such the provisions of R. 26-A (best judgment assessment) are clearly attracted to the facts of the case. 4. For a proper disposal of this writ petition, it is necessary for me to trace the history in detail of this entertainment tax which has come into existence in the State from 1927. For the first time, the Madras Local Authorities Entertainment Tax Act (V of 1927), was passed, and the charging section, S. 5, provided that the entertainment tax shall be charged in respect of each person admitted for payment, and, in case of admission by stamped ticket shall be paid by means of stamp on the ticket and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rietor to the best of its judgment. R. 26-A is to the similar effect. Clause (4) of Form IV mentioned in R. 26-A says that a return giving the totals in respect of the particulars in Form II appended to the Madras Entertainments Tax Rules, 1939, for all performances during the week from Monday to Sunday (both days inclusive) shall be sent so as to reach the office of the Entertainments Tax Officer on the Tuesday immediately following at the latest. This in brief is the history of the legislation relating to entertainments tax. 5. It is common case for both the petitioner and the respondent-officer that during the relevant period, the petitioner submitted returns as per the Rules. His returns were accepted, tax levied and also collected b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ides for escaped assessment. Again the Indian Income-tax Act, by S. 34 of the 1922 Act and S. 147 of the 1961 Act provides for income escaping assessment. Thus, in all these statutes there is provision for assessment or re-assessment as the case may be. But curiously, ever since the Entertainments Act has been enacted, there is no provision made for assessment of escaped income or turnover with the result a person like the present petitioner can escape paying the amount of tax legally due and payable by him. The petitioner will be following the well-known principle in the taxing statute. viz., that an assessee can avoid the tax but not evade the tax. 7. In Kamalammal v. Board of Revenue (1964) 1 M.L.J. 394 : 77 L.W. 343, weekly returns w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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