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2020 (3) TMI 734 - HC - VAT and Sales TaxImposition of penalty u/s 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959 - imposition of additional tax on the sales made by the Assessee, which were not supported by declaration in 'C' Forms - Best Judgment Assessment - HELD THAT:- The parameters of Section 12(3)(b) of the Act are not satisfied in the present case. Section 12(3)(b) provides for imposition of penalty in case of submission of incorrect or incomplete return by the Assessee. Both the grounds given above for imposition of additional tax on the Assessee did not result in Best Judgment Assessment against the Assessee and it cannot amount to filing of incorrect or incomplete return by the Assessee. On debatable issues, even if the addition in taxable turnover is made by the Assessing Officer, it does not amount to Best Judgment Assessment, which can be passed, only if the regular books of accounts and the return filed by the Assessee are rejected for given reasons. Therefore, the learned Tribunal has erred in relying upon the insertion of the Explanation in Section 12(3) of the Act at a later date with effect from 01.04.1996 to uphold such penalty in the year 1993-94. Thus, the Explanation to Section 12(3) does not get attracted to the facts of the present case at all. Petition allowed.
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