1963 (6) TMI 30

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed a taxable turnover of Rs. 17,065-13. The assessing officer checked his accounts and found grave infirmities and defects. The account books were rejected and the turnover was determined on the best judgment basis at Rs. 22,390. The assessee preferred an appeal to the Appellate Assistant Commissioner but failed. He preferred a further appeal to the Sales Tax Appellate Tribunal. His contention that the department was not right in rejecting the account books did not find favour with the Tribunal. It held that the account books were properly rejected and observed that the department acted rightly in resorting to estimation of the turnover for the year in question. The assessee also pressed another contention before the Tribunal and that wa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... before the first assessing authority. The Tribunal observes that, "Equity, natural justice..........demand that the concession should not be denied at any stage including appeal stages contemplated under the Act unless some restrictions are placed for exercise of such option in the Act or the rules framed thereunder." A taxing statute cannot be interpreted by importing notions of equity or natural justice. Where the terms of the statute are clear, they would have to be given effect to whether harsh or unjust. We must also remember that section 7 is a beneficient provision enabling the assessee to exercise an option in his favour. Such provisions have to be construed strictly and literally. He who seeks a benefit under a statute by reason o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....all for and scrutinize the accounts of the dealer and enquire into the correctness of the return made by the assessee. If the authority is satisfied that the return submitted is correct and complete, it shall fix provisionally on the basis of the return the annual tax payable at the rate or rates specified in sections 3, 4, 5 or 7 of the Act. Section 7 is the provision which provides for payment of tax at a compounded rate. If no return is submitted by the dealer or if the return submitted by him appears to the assessing authority to be incorrect or incomplete, the authority may make an enquiry in the matter and determine the turnover of the dealer to the best of his judgment and fix provisionally the annual tax or taxes payable at the rate....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....whole scheme and machinery of assessment indicate that the compounded rate of tax has to be levied by the assessing authority at the time when the assessment is made, of course on the exercise of the option by the assessee. Now, section 7(2) of the Act obliges the assessee to apply to the assessing authority to be permitted to pay the tax at the compounded rate when the assessee assumes his total turnover for a year to be not more than fifty thousand rupees. It is only on permission being granted he would become entitled to pay the tax at the compounded rate in advance during the year in monthly or prescribed instalments. If that is the position with regard to payment of tax provisionally in the first instance, we do not see why the asse....