TMI Blog2019 (1) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... mpletion, under sub-section (10) only saves the assessee from an assessment under Section 22 for reason of the return originally filed being defective. Section 22 (10) is also subject to Sections 24 and 25 of the Act; ie: an assessment completed under Section 21 is capable of being re-opened under Section 25 for assessment of escaped turnover wherein the Assessing Officer is conferred with the power to carry out assessment to the best of his judgment. In the present case, three diaries were recovered from the premises of the assessee. There can be no presumption that there were no other suppressions. The assessee would not keep the entire details of suppression available for detection. The three diaries also found 72 instances of suppre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and after computation of the actual suppression detected, the Intelligence Officer passed an order fixing the compounding fee at the maximum permitted in the provision. The assessee paid up the said amount and then filed a return as provided under sub-Section (10) of Section 22 of the Act, including the turnover suppression detected on inspection. The assessee also had paid up the entire tax and the interest due simultaneous to the payment of the compounding fee. 3. It is the submission of the learned counsel that the return having been filed and the tax with respect to the suppressed turnover having been satisfied with interest; the provision under subsection (10) of Section 22 deems it to be a regular assessment and then there could be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be rendered redundant and otiose. However, the learned counsel would submit that the proviso will have application only if a further suppression is detected. We cannot agree. If a further suppression is detected, then there is absolutely no need to make an estimation so as to bring such turnover for assessment. Any suppression detected could be added on and an estimation is warranted only when there is a best judgment assessment proposed which has to have a reasonable nexus with the detected offence. 6. The question we have to consider is, when a suppression is detected and the same is permitted to be regularised by filing of a return as provided under sub-Section (10) of Section 22, could there be a best judgment assessment estimating t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on detected, especially on the finding that there is a clear and definite pattern of suppression over the year. In the present case, we see that three diaries were recovered from the premises of the assessee. There can be no presumption that there were no other suppressions. The assessee would not keep the entire details of suppression available for detection. The three diaries also found 72 instances of suppression over nine months of the subject year. There is a definite pattern of suppression established from the recovered documents and best judgment is permissible to cover up the probable omissions and suppressions. In such circumstances, we do not think that the case of the review petitioner stands on a different footing from the other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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