1964 (10) TMI 77

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....nt was duly paid by the petitioner-firm. As a result of complaints made against this assessment, a notice in Form (S. T. XIX) was issued by the Assessing Authority to the petitioner-firm on 9th of March, 1961. This notice was served on the petitioner-firm on 13th of March, 1961. The books of account were examined and a "best judgment assessment" was made by the Assessing Authority on 26th of June, 1961, calling upon the petitioner to pay an additional sum of Rs. 1,371-93 P. Aggrieved by this order, the petitioner-firm filed an appeal in which the assessment was challenged on the ground that adequate opportunity was not afforded to it for presenting its case. This appeal was allowed on 17th of April, 1963. Fresh notice was issued thereaft....

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....Civil Writ No. 169 of 1964, decided on 9th of October, 1964 *. The Full Bench was asked to resolve two conflicting views, one which considered that the time started from the issue of notice and the other when the final order of assessment on the basis of "best judgment" had been completed. The answer of the Full Bench is contained in the penultimate paragraph of the judgment of Dua, J., who, speaking for the Court, thus observed; "In my opinion, whenever a question arises as to whether or not an Assessing Authority has proceeded to assess to the best of his judgment, it is for that authority to show that it has so proceeded within the period prescribed by the statute. As to at what point of time, he did actually proceed to so assess woul....

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....itation. In a very forceful argument Mr. Mittal, however, contends that the judgment of 26th of June, 1961, having been set aside in appeal, the petitioner is entitled to reckon the period of three years afresh from the issue of the second notice. In my opinion, this is not a legitimate argument and I do not find it possible to accept it. The requirement of the statute, according to the Full Bench, is that the Assessing Authority should proceed to assess within a period of three years from the close of the assessment year, or the different quarters relevant thereto. It is well to observe that the appeal against the order on "best judgment basis" was preferred not on the score of limitation but on the ground that the petitioner had not be....