STATE OF PUNJAB Vs. TARA CHAND LAJPAT RAI

JUDGEMENT

(1.) This appeal by certificate granted by the Punjab High Court raises the following question:-

(2.) A few facts for understanding this question may first be stated. The respondent is a partnership firm registered under the Act and was at the material time carrying on business in vegetable ghee, sugar and other commodities. The assessment year in question commenced from, April 1, 1955 and ended on March 31, 1956. The dealer furnished four quarterly returns as required by the Rules framed under the Act viz., for the period April to June, 1954 on October 1, 1954, July to September 1954 on December 16, 1954 October to December, 1954 on March 12, 1955 and for January to March, 1955 on June 16, 1956. Though these returns were not filed within 30 days after expiry of each of the quarters as required by the Rules, no objection was taken by the Assessing Authority. The firm deposited three sums of the time of filing the returns aggregating to Rs. 10,649-4-0. Subsequently, it paid a further sum of Rs. 14,477 on the basis of those returns.

(3.) Not satisfied with these returns, the Assessing Authority issued a notice under S. 11 (2) in form S. T. XIV which is a comprehensive form and which admittedly was served on the dealer on January 11, 1957, i.e. before three years expired, from each of the respective dates for filing of the said returns. This is clear from the fact that the date for filing the first return which admittedly was served on the dealer on January 11, 1957, i.e., before April 30, 1955. On July 5, 1960, the Assessing Authority examined Tara Chand, a partner in the firm but did not finalise the assessment order on that day as he wanted to make further enquiries and passed the assessment order impugned in this appeal on August 11, 1960,. The Assessing Authority disbelieved the accounts produced by Tara Chand and added sales of Rs. 4,00,000 in the gross turnover shown in the returns and assessed the firm on the turnover of Rs. 16,92,148-1-0 to a tax of Rs. 33,127-1-6. After giving credit of the said two sums deposited by the dealer the balance of Rs. 8,000 and odd remained payable by the firm.