TMI Blog1967 (2) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... riginally there was a best judgment assessment made on the petitioner-company on 11th November, 1963. There was also a proposal to levy a penalty of Rs. 1,050 and a demand notice for the same was served on the petitioner. Both the original assessment order and the notice proposing levy of penalty were served on the petitioner on 29th November, 1963. Then the petitioner was served with an erratum d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eteness or incorrectness of the return submitted, and forms part of the proceedings resulting in best judgment assessment. The assessment proceeding based on best judgment under sub-section (2) is a quasijudicial proceeding, and so too the levy of penalty under sub-section (3), and what is contemplated by the two sub-sections is one enquiry for both and therefore the assessing authority while maki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issue of an erratum. It will be seen that it is clearly admitted by the issue of the erratum that the levy of penalty has not been made in the order of assessment itself and certainly by the issue of an erratum penalty cannot be levied. In the result, this writ petition is allowed and the penalty proceedings quashed. No costs. Petition allowed. - - TaxTMI - TMITax - CST, VAT & Sales Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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