PESALA VENKATA SUBBAYYA Vs. STATE OF ANDHRA

JUDGEMENT

(1.) THE facts in this revision case are not in dispute and they may be briefly stated. The petitioners are a firm of wholesale dealers dealing in pulses, provisions etc. at Nellore. In respect of the assessment year 1951-52, they elected to be assessed on monthly turnover basis. Monthly returns in Form A-3 were submitted by the petitioners. The Deputy Commercial Tax Officer, on a surprise inspection, discovered that a turnover of Rs. 1,16,875-12-11 was not included in the return submitted for April and May, 1951. He did not make any provisional assessment month after month separately. Instead, on 31st March, 1953, he made a final assessment for the whole year on a turnover of Rs. 6,56,073-0-8 of which Rs. 2,00,000 was an addition made by him on the basis of supression of turnover in the returns for the months of April and May, 1951. The assessees questioned the validity of that order by preferring an appeal to the Commercial Tax Officer. But the appeal was dismissed. An appeal preferred against that order to the Sales Tax Appellate Tribunal was also rejected. In the revision, the assessees question the validity of the assessment on the ground that the Deputy Commercial Tax Officer had no power to assess the petitioners for the whole year without making a provisional assessment every month.

(2.) TO appreciate this argument, the relevant provisions of the Madras General Sales Tax Act and the Madras General Sales Tax (Turnover and Assessment) Rules, 1939, may be noticed.

(3.) Section 3 (1) :-"subject to the provisions of this Act (a) every dealer shall pay for each year a tax on his total turnover for such year. Section 3 (4) :-"for the purposes of this section and the other provisions of this Act, turnover shall be determined in accordance with such rules as may be prescribed : Provided that no such rules shall come into force unless they are approved by a resolution of the Legislative Assembly. Section 3 (5) :-"the taxes under Sub-sections (1) and (2) shall be assessed, levied and collected in such manner and in such instalments if any as may be prescribed. Section 9 (1) :-"every dealer whose turnover is ten thousand rupees or more in a. year shall submit such return or returns relating to his turnover in such manner and within such periods as may be prescribed. Section 9 (2) :-" (a) If the assessing authority is satisfied that any return submitted under Sub-section (1) is correct and complete, he shall assess the dealer on the basis thereof. (b) If no return is submitted by the dealer under Sub-section (1) before the date prescribed or specified in that behalf or if the return , submitted by him appears to the assessing authority to be incorrect or incomplete, the assessing authority shall assess the dealer to the best of his judgment.