TMI Blog1971 (6) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... , investigation was undertaken by the Special Staff of the Commercial Taxes Department, as the petitioner did not submit his returns of turnover in form A3, as required under the Act and the Rules made thereunder. The investigation disclosed that there were certain money dealings between the petitioner on the one hand and Messrs Moorthy Co., on the other, and in order to realise such monies advanced by the petitioner to Messrs Moorthy Co., it is said, he purchased the entire stock of rice held by Messrs Moorthy Co. and sold them in Madras. After having had such information, the petitioner was asked to show cause as to why the turnover covered by such purchase and sales during the year 1963-64 be not brought to tax and a penalty levied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he non-disclosure or production of a carbon copy of such credit bills in the usual form which are usually kept in a businessman's house when such bills are issued to evidence the sale, is a circumstance which has not been explained in full, nor have they been dealt with by the assessing officer when he passed the impugned order. The records equally do not disclose that this material which was secured by the Special Staff was ever put to the petitioner; nor were the witnesses whose testimony was relied upon by the assessing officer when he decided on the subject, subjected to cross-examination by the petitioner as the aggrieved person in the proceedings. The case of the petitioner, as disclosed in the affidavit in support of this application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he principles of natural justice and has to be struck down. The learned Government Pleader would, however, state that the material on record is sufficient for an instructed person to pass the order impugned and no request in writing having been made at any time by the petitioner to produce material to counteract the material on record, the present suggestion is an afterthought. He also mentions that an appeal has already been filed as against the impugned order and that the said appeal is pending disposal before the appellate authority. On a fair appraisal of the merits as above, I am unable to agree with the learned Government Pleader that the case has been dealt with by the assessing officer squarely, justly and reasonably. There has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf with all the material on which he could support his case. To establish a jural relationship of seller and purchaser, the present material on which reliance is placed unilaterally by the department may not be sufficient. Such material has to be decided in the presence of the person, who is accused of having deliberately avoided the region of taxation. No such attempt has been made in the instant case. Again, the assessment is not proper, because the elements of sale, which have to be established as being present so as to compel the assessing authorities acting under the Tamil Nadu General Sales Tax Act to assess the dealer have not been established in a manner known to law. In a sale, there are three elements, viz., the seller, the buyer, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
