TMI Blog1973 (7) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... e us only two questions. His first submission was that the proceeding under section 19(1) was not justified. This contention was exclusively based on the wording of section 19. That section is in these terms: "19. Assessment of escaped turnover.-(1) Where for any reason the whole or any part of the turnover of business of a dealer has escaped assessment to tax in any year or has been under-assessed or has been assessed at a rate lower than the rate at which it is assessable, or any deduction has been wrongly made therefrom, the assessing authority may, at any time within four years from the expiry of the year to which the tax relates, proceed to determine to the best of its judgment the turnover which has escaped assessment to tax or has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d assessment and that referring to the definition of the word "tax" it was contended that the turnover had not escaped assessment and, therefore, section 19 was inapplicable. To understand this contention a few facts have to be stated. 3.. There were two dealers, both registered; the assessee, the revision petitioner; and a firm M/s. Bharath Timbers. The turnovers now sought to be assessed in the hands of the revision petitioner for the three years were admittedly assessed to tax in the hands of the firm M/s. Bharath Timbers for the three years. The Sales Tax Officer received information that the business in timber called Bharath Timbers was actually owned and conducted by the revision petitioner alone and that M/s. C.K. Soman and K. Radh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether because there have been assessments made against the Bharath Timbers for the three years the Sales Tax Officer is precluded from proceeding under section 19(1) of the Act. We do not think so. What the section deals with is the turnover of a dealer which had escaped assessment. The relevant portion of the section reads: "Where for any reason the whole or any part of the turnover of business of a dealer has escaped assessment to tax." The words are "turnover of business of a dealer". The revision petitioner was a dealer. On the findings entered by the Tribunal it is his turnover that had escaped assessment. So section 19(1) of the Act is attracted. The same view has been taken by the Madhya Pradesh High Court in the decision in D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. But we find no material difference in the wording of section 147 of the Incometax Act, 1961, which is the section corresponding to section 19 enabling the assessment of escaped income. The principles of the decision of the Incometax Act, we think, therefore, must apply. We are unable to accept the contention of counsel for the revision petitioner that the assessments made on the revision petitioner for the three years of the escaped turnover is not permissible under section 19(1) of the Act. 8.. Counsel for the revision petitioner then contended that this view of ours would result in double taxation, the same turnover being taxed in the hands of the revision petitioner and the firm. Counsel pointed out the last sentence in pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 'double taxation'. It was said that as the orders of assessment on the individual members of the said family had become final, if the Income-tax Officer was permitted to assess the Hindu undivided family for the same assessment year, tax would be imposed on the same income twice over. It is true that the Act does not envisage taxation of the same income twice over 'on one passage of money in the form of one sort of income'. It is equally true that section 14(1) of the Act expressly debars the imposition of tax on any part of the income of a Hindu undivided family received by its members. The fact that there is no provision in the Act dealing with a converse position does not affect the question, for the existence of such a converse posi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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