TMI Blog1971 (3) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... n was called for from the petitioner on 24th October, 1961. The petitioner explained in December, 1961, stating that the figures mentioned in the slips were not and could not be any turnover relating to any business of his and the said figures represented advances or loans to third parties. The revenue's case is that there was a notice calling for an explanation regarding the slips and the explanation as above was rendered by the petitioner to the Special Deputy Commercial Tax Officer and not to the assessing officer. But the records, however, do not show or support this suggestion. It is not disputed that such explanations though addressed to the special staff are expeditiously sent to the assessing authorities. The natural presumption is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... came up to this court and obtained relief, and the amount collected from him by way of tax on the ground that the sum of Rs. 65,505 had everything to do with his trade and business was not accepted by this court and the amount collected by way of tax was returned. Long after the first incident which took place in 1961 and the second which took place in 1964, which, however, did not have any nexus with the first inspection in 1961, the assessing authority sought to exercise jurisdiction under section 16 of the Tamil Nadu General Sales Tax Act, 1959, and issued a notice of revised assessment on 12th January, 1966, and called for objections. In the objections, the petitioner raised a specific plea that these slips which were secured in 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, either directly or through another, on his own account or on account of others whether for cash or for deferred payment or other valuable consideration. Unless, therefore, the record discloses or a reasonable conclusion is plausible that an amount which is characterised as "turnover" would fit in with a commercial activity, which naturally involves a sale, supply or distribution, then such an amount cannot rightly be characterised as "turnover" and much less "escaped turnover". In the instant case, the slips were compared with the account books of the assessee and many of the items in the slips did accord with the entries in such books. There was, however, an excess of cash noticed in the slips so recovered. One knows not as to whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which alone the impugned order of assessment is based, there does not appear to be any clinching or acceptable material on record or in the files for any taxing authority to come to the conclusion that there has been an escapement of turnover in the case which would warrant the reopening of the assessment under section 16 of the Act. There is, therefore, the initial want of jurisdiction when the reassessment proceedings were processed through. The second contention of the learned counsel is that there is no finding at all by the assessing authority that the amount represents unaccounted sales turnover and, therefore, escaped turnover; this is not so very prominent as it ought to be. The assessing authority is not sure whether it relat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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