STATE OF TAMIL NADU Vs. THIRUVALAMGAL AGARWAL MUDUKUNDJ

JUDGEMENT

(1.) THIS tax-revision case is by the Revenue to revise the order dated 28-1-1974 of the Sales Tax Appellate Tribunal (Second Additional Bench), Madras, premitting the assessee to pay the tax under S. 7 of the Tamil Nadu General Sales Tax Act, 1959 at compounded rates.

(2.) THE respondent-assessee, running a sweet-meat stall, returned a total and taxable turnover of Rs. 94, 139.45 in Form A1 submitted on 5-1-1973 for the year ended 31-3-1973 and opted to pay tax under S. 7 of the Act at compounded rates. THE Assessing Officer called for the assessee's accounts and verified them and rejected them on account of certain defects noticed in the accounts and resorted to the best judgment method of assessment and called upon the assessee to show cause why the turnover should not be determined at Rs. 1, 03, 553, 39 by the addition of 10% to the turnover returned by the assessee, taxable at 3 1/2% under S. 3(2) of the Act. THE assessee did not file any objection. THE Assessing Officer confirmed the proposal and assessed the tax at Rs. 3, 624.37 and called upon the assessee to pay the balance of Rs. 872.37, after adjusting the tax of Rs. 23, 752.00 already paid.

(3.) IN the assessee's further appeal to the Tribunal, it has been found by the Tribunal that the rejection of the assessee's accounts was justified. However, the Tribunal found that addition of ten per cent to the turnover disclosed by the assessee was excessive and reduced it to five per cent and determined the turnover at Rs. 98, 846.42 and assessed it under s. 7 of the Act on the ground that the assessee had opted for assessment under that Section.