STATE OF MADRAS Vs. M P IBRAHIM KUNHI

JUDGEMENT

(1.) THIS petition preferred by the Government, under Section 12-B of the Madras general sales Tax Act, arose out of proceedings taken under the Act, to assess the turnover of the respondent for the year 1950-51. The assessee did not file any return of his turnover for 1950-51 within the time prescribed. After other proceedings had been taken by the assessing authorities, he voluntarily submitted a return of his turnover on 20-2-1954. That return, supported by the entries in his account books, was accepted by the assessing authorities and on 11-3-1954 the respondent was assessed to tax on a turnover of Rs. . 18,651-13-9.

(2.) THAT assessment was confirmed by the Commercial Tax Officer on appeal but on further appeal by the assesses the Tribunal held that the assessment fell within the scope of Rule 17 (1) of the Madras General gales Tax Rules and that the assessment made on 11-3-1954 was barred by the period of limitation prescribed by the rule. The view of the Tribunal was that the turnover of the assesses had escaped assessment and that the period of two years prescribed by the rule before it was amended applied to the respondent It was the correctness of that decision that the Government challenged.

(3.) APPARENTLY the Tribunal overlooked the main feature of the case, that the assessee filed a return of his turnover, though he filed it only on 20-2-1954. That return was accepted as correct, and he was assessed to tax on the basis of that return.