TMI Blog1973 (4) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the books of account maintained by the branch office. But the assessing authority, on verification of the accounts of certain cotton dealers in Tiruppur, found that they had sold cotton to the assessee and given delivery of the goods at Tiruppur. As the assessing officer felt that the sales of cotton to the assessee-mills had been completed by giving delivery at Tiruppur, the assessee, as the last purchaser of cotton within the State, was liable to tax under the provisions of the Tamil Nadu General Sales Tax Act, 1959. In that view he issued a pre-assessment notice proposing assessment to tax on (i) first sales of cotton yarn as per the books (Rs. 2,71,505.60) and (ii) purchase value of cotton in respect of last purchases effected w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been included either in the monthly returns or shown in the books of account of the Tiruppur branch, an inference could be drawn that there was a failure on the part of the assessee to disclose such turnover relating to the purchase of cotton. The assessing authority accepted the figures as the actual turnover relating to the purchase of cotton, and made a best judgment assessment by adding Rs. 6,84,699.28 to the turnover of Rs. 2,71,505.60 returned by the assessee. We are not concerned in this case with the validity of the said best judgment assessment. The only question that has been canvassed by the assessee is whether the levy of penalty of a sum of Rs. 13,694 is justified. According to the learned counsel for the assessee, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had been recorded in the accounts of the head office and that it was only under a mistaken impression that the purchase of cotton was taxable in Mysore State the turnover had not been disclosed in the books of account of the Tiruppur office, has not been established by the assessee showing that the turnover in question has been shown in the account books maintained by the head office. It is seen that it was only after the assessing authority pointed out in the pre-assessment notice that the assessee had purchased cotton from various dealers in the State and taken delivery of the same at Tiruppur, the assessee came forward to disclose the actual turnover of purchases of cotton in the assessment year. In these circumstances, it cannot be said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority disclose the turnover in question. It was only after the assessing authority made an investigation with the cotton dealers in and around Tiruppur that the fact that the assessee had purchased cotton and taken delivery of the same at Tiruppur came to light and it was only after this transaction was pointed out by the assessing authority, the assessee gave some explanation as to why the turnover had not been included in the monthly returns, or in the books of account maintained at the Tiruppur branch, and gave details of such turnover. In our view, these facts clearly lead to the inference that, but for the investigation made by the assessing authority, the turnover would not have come to light. In our view, section 12(3) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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