1965 (9) TMI 42

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....ar. The appellant appeared in response to the notice but without filing the return called for by it, and objected to the issue of the notice on the ground that he had no information on the basis of which he could issue the notice. It is said that on the receipt of the objection the Sales Tax Officer wrote to another Sales Tax Officer, namely the Sales Tax Officer, Special Investigation Branch, Varanasi, asking for certain information in connection with the appellant's assessment to income-tax. No order has been passed by the Sales Tax Officer on the appellant's objection and he has not passed any assessment order under section 21. The assessee, after waiting for some time for orders on its objection, applied for prohibition to restrain him ....

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.... adoption of three methods. One method was that it did not maintain the accounts correctly; its book of bank pledges did not tally with the stock shown in the Production and Issue Register, entries in it did not tally with the delivery memos and for certain deliveries no memos were issued at all. Another method was that it did not incorporate some sales of goods in its account books. The third method was to show too high a percentage of the production ratio of bran with the consequence that the production of costly and taxable wheat products like flour, maida and suji was understated. As their production was understated their sale also was understated. It was on the basis of this information received before the issue of the notice that the ....

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....est more than by an objective test. If he formed the belief and the facts in his possession could possibly justify it, it must be held that he had reason to believe. Another fact to be noted is that the reason has to be merely for the belief; the word used in the provision is "believe" and not "be convinced" nor even "be satisfied". Less reason is required for believing than for conviction or even for satisfaction. Certain reason may be enough for belief though not for conviction or satisfaction. The Sales Tax Officer was not required to be convinced or satisfied about the escape of a part of the turnover from assessment; it was enough if he only believed or opined that it had escaped assessment, provided that his belief or opinion was actu....