1970 (4) TMI 136

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.... the estimate made in best judgment and the amount disclosed by the assessee as the amount of concealed turnover, particularly when the assessment is related to suppression of purchases or sales?" The second question has been referred at the instance of the assessee and is as follows: "(2) On the facts and circumstances of the case, whether the estimate of Rs. 1,00,000 was made on a reasonable basis?" 2.. The assessee is a general merchant. He submitted a return showing a gross sale of Rs. 58,633 and 11 annas. The Sales Tax Officer got information that the gross sales returned by the assessee had been substantially minimised. A consignment of seven packages was, however, caught by the flying squad and on enquiry it was found that the ....

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....s deliberately concealed and was not shown in the returns. An estimate of the turnover cannot be the amount which was concealed according to section 43(1)." We are unable to agree with this line of reasoning by the Board of Revenue. Section 43(1) which authorises the imposition of penalty does not require that the actual amount of turnover concealed on which tax should have been paid, must be found on the basis of accounts and documents produced before the assessing officer and only then a penalty can be imposed. The relevant part of section 43(1) is as follows: "If the Commissioner or the appellate authority in the course of any proceeding under this Act, is satisfied that a dealer has concealed his turnover or aggregate of the amount o....