Best judgment limitation does not apply where returns are accepted, and concessional tax needs prescribed declaration forms.

Where returns are accepted and no turnover is added or reduced, the assessment is not treated as a best judgment assessment, so the limitation applicable to best judgment proceedings does not invalidate the order or require further notice for production of particulars. Concessional sales tax treatment depends on production of the prescribed C and D declaration forms; that requirement is mandatory for availing the concession, though the forms may be produced at any stage of the assessment proceedings. As the assessee failed to produce the forms despite opportunities, no concession was available and the impugned orders were left undisturbed.

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Issues: (i) whether the assessment could be treated as a best judgment assessment so as to attract the plea of limitation and invalidate the orders for want of notice requiring further particulars; and (ii) whether the assessee was entitled to concessional rate of tax without producing the requisite C and D declaration forms.

Issue (i): whether the assessment could be treated as a best judgment assessment so as to attract the plea of limitation and invalidate the orders for want of notice requiring further particulars.

Analysis: The returns filed by the assessee had been accepted and no part of the turnover was added or reduced by the Assessing Authority. The controversy did not arise from rejection of the returns on best judgment basis, but from the assessee's failure to produce the declaration forms needed to secure concessional treatment. In that situation, the statutory limitation applicable to best judgment assessment did not come into play, and the absence of any further notice requiring production of forms did not vitiate the assessment.

Conclusion: The plea of best judgment assessment and limitation failed, and the assessment orders were not invalid on that ground.

Issue (ii): whether the assessee was entitled to concessional rate of tax without producing the requisite C and D declaration forms.

Analysis: The concessional rate depended on production of the prescribed declaration forms. The Court treated the requirement as mandatory for the purpose of granting the concession, while also observing that the forms could be produced at any stage of the assessment proceedings. Even after repeated opportunities before the assessing authority and the appellate forums, the assessee did not produce either the original or duplicate forms. On those facts, there was no basis to compel grant of the concession.

Conclusion: The assessee was not entitled to concessional rate of tax without production of the C and D forms.

Final Conclusion: No ground was made out for interference with the impugned orders, and the writ petition failed in full.

Ratio Decidendi: Where the returns are accepted and the case is not one of best judgment assessment, limitation applicable to such assessments does not arise; and concessional sales tax treatment cannot be granted unless the prescribed declaration forms are produced, though they may be furnished at any stage of the proceedings.

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