K SSUBBARAYAPPA AND SONS Vs. STATE OF MYSORE

JUDGEMENT

(1.) The only question of law that arises for decision in this civil revision petition is whether the respondent's right to assess the petitioner for the assessment year 1952-53 is barred by rule 34(1) of the Mysore Sales Tax Rules, 1948, which shall be hereinafter referred to as the "Rules". If our answer is in the affirmative, then the impugned order is liable to be quashed.

(2.) The material facts are not disputed. They are as follows : The original assessment order dated 26th October, 1953, was set aside by the Deputy Commissioner of Commercial Taxes, Bangalore Division, Bangalore, in appeal. He remanded the case to the Assessing Authority as per his order dated 12th November, 1954, for fresh enquiry and disposal. Subsequent to that order, the petitioner filed a return of turnover declaring his gross turnover for the year at Rs. 2,57,931-10-1 and a net turnover at Rs. 1,53,496-3-11. This return appears to have been received by the Assessing Authority on 24th February, 1956. But the Assessing Authority did not rely on that return but determined the net taxable turnover at Rs. 1,90,000 on the basis of "best of judgment". This order (dated 26th August, 1957) is impugned in the present proceedings.

(3.) It was contended on behalf of the petitioner, before the Tribunals below, and that contention was reiterated in this Court that the impugned order relates to an "escaped assessment" and the same having been made after the period fixed in rule 34(1) of the Rules is unsustainable. The relevant portion of that rule reads thus :