TaxTMI 
TaxTMI 
1967 (1) TMI 64
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....cords. The gravamen of the charge of the petitioners is that they were not given an opportunity to explain the entries in the account books and correspondence seized from them before the Sales Tax Authorities passed provisional assessment. After the seizure of the records, the joint Commercial Tax Officer issued a notice to the petitioners stating that the inspection of the petitioners' place of business and their godowns showed that they were maintaining anamath accounts in a pocket note book and in slips of papers, that a check of the pocket note book showed that the petitioners did not account for sales amounting to Rs. 2,09,445.46 relating to the month of April, 1964, that he proposed to determine their turnover for the month of April, ....
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....e proposed assessment. The petitioners suggested to the Sales Tax Authorities to take every conceivable safety measure when the records were handed over to them. The petitioners even undertook to take true copies of the concerned records for the purpose of proving the correctness and completeness of their accounts. The petitioners requested the authorities at least to furnish them with the certified copies of the records on their furnishing the necessary stamp papers, if they were not allowed to take true copies of the records and file before them. The department did not reply to their letter. Nor did they consider their request. On the other hand, the Sales Tax Authorities passed a provisional assessment in respect of the dealings of the p....
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.... in the account books. When all the account books of a person are in the office of the Sales Tax Authorities and when he is directed to look into the records in the office, one cannot expect to have a warm reception or a calm atmosphere as he would be looked upon by the staff with suspicious looks and expressions of contempt. That is why the petitioners requested the Sales Tax Authorities to return the records to them for enabling them to submit their explanation regarding the naked figures shown in the extracts sent along with the notice. The question that now arises for my consideration is whether the petitioners were given a reasonable opportunity to explain the questions raised by the Sales Tax Authorities about the correctness of the f....
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....of the records and file them before the Authorities prior to taking back all their records. Alternatively the petitioners requested the authorities to furnish them certified copies of the records. The authorities did not comply with the petitioners' request. Nor did they send any reply to the petitioners. On 31st July, 1964, a provisional assessment was made in respect of the turnover of the petitioners for April, 1964. In these circumstances one would feel that no reasonable opportunity was given to the petitioners to submit their explanation before the assessment was made. It is useful to refer to the observations made by Veeraswami, J., in Shivji & Co. v. joint Commercial Tax Officer[1965] 16 S.T.C. 769 at 771.: "We need hardly observe t....
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....ntended that even though the petitioners have preferred an appeal against the final assessment, they have got a legitimate right to complain to this Court having writ jurisdiction that no reasonable opportunity was given to them at the time of the provisional assessment which had become final in the normal course. There seems to be some force in the contention urged by the learned counsel for the petitioners. Cases have held and decided that under Article 226 a writ can issue or an order can be passed against an assessing authority when he proceeds to make an assessment in spite of the objections made by an assessee that he has no jurisdiction, or when he proposes to make an assessment in pursuance of a notice which is invalid or not served....
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....etition on that ground at the stage of admission, I do not think it will be proper to rely upon that circumstance when the hearing of the petition clearly discloses that there has been a violation of the principles of natural justice. It is well accepted that the existence of an adequate alternative remedy is not always a bar to the issue of a writ." I feel that in the instant case the petitioners were not given a reasonable opportunity to explain the correctness and completeness of their account books before the provisional assessment was made. When the petitioners questioned the validity of the provisional assessment on the ground that the principles of natural justice have been violated, the Sales Tax Authorities should have stayed the ....