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of <h1>Court sets aside assessment orders, emphasizes legal principles, deems turnover estimation unjustified, directs reassessment.</h1> <h3>Mathi Diesel Service Versus The Commercial Tax Officer</h3> Mathi Diesel Service Versus The Commercial Tax Officer - TMI Issues:1. Acceptance of belated returns and subsequent assessment.2. Jurisdiction of Assessing Officer to make best judgment assessment.3. Validity of estimation of turnover post acceptance of belated returns.4. Application of legal principles in best judgment assessment.Issue 1: Acceptance of belated returns and subsequent assessment:The petitioner, a registered dealer, filed returns for assessment years 2013-14 and 2014-15 belatedly due to the death of the proprietor's brother. The respondent accepted the returns and levied a composition fee. However, proceedings were initiated for disallowing input tax credit and treating turnover of purchases as suppression. The petitioner challenged the assessment order for 2014-15, citing insufficient time for objections. A similar contention was raised for 2013-14, where the Court found 15 days reasonable for objections submission.Issue 2: Jurisdiction of Assessing Officer for best judgment assessment:The petitioner argued against a best judgment assessment post-acceptance of belated returns, stating that Assessing Officer lacks jurisdiction to estimate turnover reflected in returns and accounts without wilful non-disclosure. The respondent justified the estimation citing an inspection revealing previously undisclosed turnover, invoking powers under Section 27(1)(a) of the Act for escaped assessments. The Court considered whether the impugned assessment orders post-acceptance of returns were just and proper.Issue 3: Validity of estimation of turnover post acceptance of belated returns:The Court referred to a previous case where estimation of turnover based on suppressed purchases and sales was questioned. It was held that only excess sales not covered by purchases could be added. The Court found this legal principle applicable to the present case, emphasizing that estimation without material post-acceptance of belated returns was unjustified.Issue 4: Application of legal principles in best judgment assessment:Based on legal precedents, the Court concluded that the assessment orders required interference. The writ petitions were allowed, setting aside the impugned orders and remitting the matters back to the respondent for fresh consideration. The respondent was directed to re-assess in accordance with the law and legal principles discussed in the judgment.In conclusion, the Court's judgment focused on the acceptance of belated returns, jurisdiction of the Assessing Officer for best judgment assessment, validity of turnover estimation post-acceptance of returns, and the application of legal principles in such assessments. The Court emphasized the importance of following legal principles in assessments and set aside the impugned orders for fresh consideration by the respondent.
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