TaxTMI 
TaxTMI 
1984 (3) TMI 372
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.... The facts, briefly stated, are as under: M/s. Delight Steel Furniture, Jaipur (hereinafter referred to as the assessee) carries on business at Jaipur and is registered as a dealer under the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as the Act). In respect of the assessment year 1963-64, the assessee did not submit any return. The assessing authority made a best judgment assessment after estimating the gross turnover as well as the taxable turnover of the assessee at Rs. 22,000. The assessing authority also imposed a penalty of Rs. 1,000 under section 16(1)(c) and a penalty of Rs. 50 under section 16(1)(d) of the Act. The aforesaid order of the assessing authority was upheld in appeal by the Deputy Commissioner (Appeals). Th....
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....ri Bapna has submitted that for the purpose of making a best judgment assessment under section 10 of the Act it is not obligatory for the assessing authority to issue a notice. In this connection, Shri Bapna has invited our attention to the provision contained in section 10 of the Act. The provisions regarding best judgment assessment are contained in section 10(1)(b) of the Act and, at the relevant time, the said provisions read as under: "(b) If no return has been submitted by the dealer under sub-section (1) of section 7 within the period prescribed in that behalf, or if any return submitted by him appears to the assessing authority to be incorrect or incomplete, the assessing authority shall, after making such inquiry as he co....
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....see has failed to file a return. According to Shri Bapna the said provisions contained in section 10(2) are applicable only in those cases where the assessee has filed a return and the assessing authority is not satisfied with regard to the correctness or completeness of such return, and in such an event the assessing authority is required to give a notice in terms of the aforesaid sub-section. We find ourselves in agreement with the aforesaid submission of Shri Bapna that the provisions contained in sub-section (2) of section 10, which provide for issuance of a notice, are applicable only to those cases where the assessee has filed a return and the assessing authority is not satisfied with regard to the correctness and completeness of s....
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....gment the assessing authority may hold such inquiry as he considers necessary. There is no doubt that the inquiry that is contemplated by the aforesaid clause must be a fair inquiry and it may imply that an opportunity should be given to the dealer to explain the material relied against him. But this does not mean that for the purpose of holding such inquiry it is necessary that the assessing authority should give a written notice to the dealer before making an assessment to the best of his judgment. A fair inquiry may be held by the assessing authority without giving a written notice to the dealer, for example, the assessing authority or any other officer may visit the premises of the dealer and inspect the books of accounts at his premise....