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1972 (10) TMI 90 - SC - VAT and Sales Tax
Whether the assessing officer under these circumstances could be said to have had an honest belief that the turnover had partially escaped taxation so as to start proceedings under section 21?
Whether the aforesaid two preliminary notices asking for the production of accounts can be taken to be notices under section 21 for the starting of the proceedings so as to warrant passing of the assessment within one year of the service thereof?
Held that:- Appeal allowed and discharge the answer given by the High Court to question No. (i). In our opinion, the assessing authority had an honest belief that the turnover of the respondent had partially escaped taxation so as to justify initiation of proceedings under section 21 of the Act. We accordingly answer the said question in the affirmative and in favour of the department. The appellant shall be entitled to the costs of this court as well as in the High Court.