1974 (4) TMI 81

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..... and iron goods. The dispute in this case is about an alleged deliberate concealment by the petitioner of its turnover and furnishing of wrong particulars in its return for the assessment year 1970-71. For the assessment year in question, the petitioner submitted tax return declaring its gross and taxable turnovers at Rs. 3,03,632.52 and Rs. 2,39,101.13 respectively. The Sales Tax Officer rejected the assessee's books and made a best judgment assessment determining its taxable turnover as Rs. 5,30,000 on which the tax amounting to Rs. 19,925.00 was payable. He then issued the impugned notice on 4th September, 1973, to the petitioner stating that it had given wrong particulars and had concealed its turnover of the sales in its return. Accordi .....

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..... ks were held to be unreliable and for purposes of this petition it may be taken that there was good reason for rejecting them and to make a best judgment assessment. The question that remains to be considered is whether merely because there was some defect in the assessee's books which justified their rejection and making of best judgment assessment, it necessarily followed that the assessee had concealed the particulars of its turnover or had deliberately furnished inaccurate or false particulars thereof in the return filed by it. In our opinion, merely because the assessee's books of account had not been accepted and a best judgment assessment is made at a figure higher than that indicated in the assessee's turnover, it does not mean that .....

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..... which the Sales Tax Officer could have reason to believe that the assessee had concealed any part of its turnover or any particulars furnished by it in the return was wrong. Accordingly, he had no jurisdiction to issue the impugned notice. If the Sales Tax Officer has some other material in his possession on the basis of which he could be satisfied that the particulars of the turnover disclosed by the assessee were wrong or that it had deliberately concealed some particulars, he may, if it is open to him under the law, re-commence the proceedings by issuing fresh notice in accordance with law. The writ petition succeeds and is allowed with costs. The notice dated 4th September, 1973, is quashed. Petition allowed.
Case laws, Decision .....

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