Substantial compliance under deemed assessment protects returns despite a minor interest shortfall, preserving the statutory fiction.

A deeming-assessment benefit under section 46A of the West Bengal Sales Tax Act, 1994 was explained as available where returns are filed in substance in accordance with section 30(4) and the admitted tax and interest are paid, even if there is a minor technical shortfall. The analysis stresses purposive interpretation, substantial compliance, and the principle that form should not defeat substance when no real prejudice is shown. On that approach, a short payment of interest was treated as a curable defect that did not displace the statutory fiction, and the general reassessment provision under section 45(1) was therefore unavailable.

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Issues: Whether the returns filed by the assessee were entitled to be treated as deemed assessed under section 46A of the West Bengal Sales Tax Act, 1994, despite a short payment of interest, and whether the consequential assessment under section 45(1) was valid.

Analysis: Section 46A created a deeming fiction for returns furnished in accordance with section 30(4), but the Court held that the provision had to be read purposively and in light of the legislative intent. The assessee had filed the returns with receipted challans, later filed revised returns after reconciliation of accounts, and had paid the admitted tax and interest according to the returns. The shortfall of Rs. 20 in interest was treated as a technical deficiency that could not defeat the statutory benefit, especially when the scheme of section 46A and section 30(4) was satisfied in substance. The Court also emphasised that the law favoured substance over form and that substantial compliance was sufficient where no real prejudice was shown.

Conclusion: The assessee was entitled to the benefit of deemed assessment under section 46A, and the assessment made under section 45(1) was invalid and liable to be set aside.

Ratio Decidendi: Where a taxing provision confers a deemed-assessment benefit on filing returns with proof of payment, a minor technical shortfall that does not negate substantial compliance cannot defeat the statutory fiction, and the revenue cannot resort to fresh assessment under the general assessment provision.

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