Best judgment assessment can cover section 7-A taxable turnover when dealer returns are incorrect or incomplete.

Turnover taxable under section 7-A of the Tamil Nadu General Sales Tax Act may be brought to best judgment assessment under section 12(2) when the dealer's return is incorrect or incomplete. Section 7-A is treated as a charging provision, and section 12(2) applies in general terms to absent, incomplete, or incorrect returns. The term "turnover" in section 12 is read to include taxable turnover under section 7-A, so such turnover is not confined to book figures and may be estimated to prevent leakage and evasion of tax.

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Issues: Whether turnover liable to tax under section 7-A of the Tamil Nadu General Sales Tax Act can be subjected to best judgment assessment and estimated under section 12(2) when the dealer's return is found to be incorrect or incomplete.

Analysis: A conjoint reading of sections 3, 4, 5, 7-A and 12(2) shows that section 7-A is a charging provision like sections 3, 4 and 5. Section 12(2) is couched in general terms and applies where the return relating to the dealer's turnover is absent, incomplete, or incorrect. The expression 'turnover' in section 12 therefore includes taxable turnover under section 7-A as well. The object of section 7-A is to prevent leakage and evasion of tax, and that object would be defeated if turnover under that provision were confined to the book figures alone and excluded from best judgment assessment.

Conclusion: Turnover taxable under section 7-A can be estimated under section 12(2), and best judgment assessment is maintainable in respect of such turnover.

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