9911796707
TMI Blog1966 (8) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 and 1957-58 respectively the dealer had made suppressions of turnover to the extent of Rs. 1,30,857 and Rs. 1,81,018 respectively. It was alleged that in the returns of turnover prescribed under the Madras General Sales Tax Act, 1959, the above amounts were not included, that the omission was wilful and that as a result the dealer is liable to prosecution under section 45(2)(a) of the Madras General Sales Tax Act, 1959. Two chargesheets were filed for the failure to submit correct returns for 1956-57 and 1957-58 respectively. Section 45(2)(a) of the Madras General Sales Tax Act of 1959 reads thus: "Any person who wilfully submits an untrue return, or, not being already an assessee under this Act, fails to submit a return as required by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. After referring to the above two provisions, the learned Magistrate observed that by virtue of the abovesaid provisions, the assessing authority has power to look into the accounts to detect escaped tax only within a period of five years preceding the detection, and that it would necessarily follow that the assessing authority could not go beyond the period of five years and seek to make a dealer liable for any inaccuracies in the return submitted by him for that year. The detection of an inaccuracy in the return forms part of the proceeding in an assessment, and as such inasmuch as section 16 prohibits scrutiny of accounts beyond a period of five years, the assessing authority cannot also proceed to scrutinise the correctness or other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... athered by them during an inspection are such that they could lead to the inference of the inaccuracy of the return submitted by the dealer even without reference to the accounts of the dealer. Thus while one type of inaccuracy may be related to the suppression of escaped turnover, there may be other inaccuracies which may not deal with the suppression of escaped turnover, but still will be sufficient to justify a prosecution for submission of an untrue return within the meaning of section 45(2)(a) of the Act. Even in regard to an inaccuracy in regard to turnover, the turnover revealed by the data secured may be so large that the data by themselves and without reference to the actual accounts of the dealer-whether they are capable of being ..... X X X X Extracts X X X X X X X X Extracts X X X X
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