TaxTMI 
TaxTMI 
2004 (9) TMI 633
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....ll was inspected on a number of occasions by the agricultural income-tax authorities during the period in question, viz., March 28, 1997 to March 28, 1998 and in pursuance of such visits, the petitioner was served with a show-cause notice by Agricultural Income-tax Officer, Amusement Tax section on November 20, 1997 to show cause why penal action under sections 4B and 11A of the Bengal Amusements Tax Act, 1922 should not be taken against the petitioner. In the said notice the respondent No. 1 informed the petitioner that he had visited Regal Cinema on November 18, 1997 during the later half of the matinee show and noticed a number of irregularities, notably the following: (i) While the sale statement for the show recorded the number of vie....
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....o an employee of the petitioner and had also seen the sale statements submitted by the proprietor but he refused to accept the version of the petitioner and estimated that the occupancy rate was much higher than the one shown by the petitioner. According to his physical verification the occupancy rate was estimated to be 67.11 per cent. However, going by his "best judgment" he held that there was 35 per cent "sale of houseful capacity" and accordingly he made the assessment at Rs. 14,42,042. After adjusting for entertainment tax already paid of Rs. 6,99,755.15, the balance tax payable by petitioner was Rs. 7,42,286.85 in terms of section 8A of the Bengal Amusements Tax Act. Furthermore for delay in submission of the ret....
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.... of 5 ITR. "The officer is to make an assessment to the best of his judgment against a person who is in default as regards supplying information. He must not act dishonestly, or vindictively or capriciously because he must exercise judgment in the matter. He must make what he honestly believes to be a fair estimate of the proper figure of assessment, and for this purpose he must be able to take into consideration local knowledge and repute in regard to the assessee's circumstances, and his own knowledge of previous returns by and assessments of the assessee, and all other matters which he thinks will assist him in arriving at a fair and proper estimate; and though there must necessarily be guess-work in the matter, it must be ho....
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....95 10,57,214.85 3,000 July 9, 2003 March 31, 1995 to March 28, 1996 10,42,340.50 6,000 July 9, 2003 March 29, 1996 to March 27, 1997 9,36,696.10 3,000 July 9, 2003 March 27, 1998 to March 25, 1999 8,45,469.50 (As per returns submitted) Assessment not yet completed March 26, 1999 to March 30, 2000 10,35,871.55 (As per returns submitted) -do- March 31, 2000 to March 29, 2001 The learned Advocate for the State was also directed to furnish the average percentage of occupancy of spectators in Regal Cinema during these periods and the figures are also furnished as follows: 10,05,232.90 (As per returns submitted) -do- Period % of occupancy April 1, 1994 to March 30, 1995 . . . 29.30 March 31, 1995 to March 28, 1996 . . .....
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....," he has by implication condoned the delay in submitting the returns. As the statute stands the assessee's default for delayed submission of returns may be penalised or fully condoned; there is no provision for reduction of penalty. We are inclined to agree to accept this view as no partial condonation is allowed under the present Act. The learned Advocate for the State has correctly pointed out that one could not go back in time to the situation obtaining in 1997-98 and conduct another comprehensive head count covering all the shows-noon, matinee, evening and night. Furthermore, she also points out that there has been a sea change in the method of charging tickets for cinema shows since 1998 in that the hall owners have now muc....