9911796707
TMI Blog1965 (9) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... to the notice but without filing the return called for by it, and objected to the issue of the notice on the ground that he had no information on the basis of which he could issue the notice. It is said that on the receipt of the objection the Sales Tax Officer wrote to another Sales Tax Officer, namely the Sales Tax Officer, Special Investigation Branch, Varanasi, asking for certain information in connection with the appellant's assessment to income-tax. No order has been passed by the Sales Tax Officer on the appellant's objection and he has not passed any assessment order under section 21. The assessee, after waiting for some time for orders on its objection, applied for prohibition to restrain him from going on with the assessment and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that it did not maintain the accounts correctly; its book of bank pledges did not tally with the stock shown in the Production and Issue Register, entries in it did not tally with the delivery memos and for certain deliveries no memos were issued at all. Another method was that it did not incorporate some sales of goods in its account books. The third method was to show too high a percentage of the production ratio of bran with the consequence that the production of costly and taxable wheat products like flour, maida and suji was understated. As their production was understated their sale also was understated. It was on the basis of this information received before the issue of the notice that the Sales Tax Officer is said to have believe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med the belief and the facts in his possession could possibly justify it, it must be held that he had reason to believe. Another fact to be noted is that the reason has to be merely for the belief; the word used in the provision is "believe" and not "be convinced" nor even "be satisfied". Less reason is required for believing than for conviction or even for satisfaction. Certain reason may be enough for belief though not for conviction or satisfaction. The Sales Tax Officer was not required to be convinced or satisfied about the escape of a part of the turnover from assessment; it was enough if he only believed or opined that it had escaped assessment, provided that his belief or opinion was actually there and not a mere pretence. Ordinaril ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Investigation Branch enquiring about the result of the investigation is of no consequence. There is nothing like the facts in his possession so far being incomplete. If on them, even though they were not full facts, he could, and did form the belief, the notice issued by him was in order. Even though he had reason for the belief he could obtain further facts from the Sales Tax Officer in order to decide whether to proceed with the assessment or cancel the notice. He always had jurisdiction to cancel the notice on being satisfied that there was no escape and his seeking information about further facts from the other Sales Tax Officer cannot prove that he had not enough facts in his possession before the issue of the notice or that the is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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