ASSISTANT COMMERCIAL TAXES Vs. ROYAL GARMENT EMPORIUM

JUDGEMENT

(1.) THESE two revisions arise out of the Judgment dated 23.12.1997 passed by the Rajasthan Tax Board Ajmer whereby the Rajasthan Tax Board, Ajmer has affirmed the Judgment dated 11.9.1996 passed by the Deputy Commissioner (Appeals) setting aside the penalty imposed against the assessee.

(2.) THE brief facts giving rise to these revisions are that: a survey was conducted on the premises of the assessee on 8.7.1991 by the Sales Tax Department and it was found that the assessee is not maintaining regular books of accounts. Subsequently, on 16.7.1991, a survey was conducted by the Income Tax Department in which whatever documents containing information about the business of the assessee were available were seized by the Income Tax Department and no material was available with the assessee. In these circumstances, from the period 1.4.1991 to 31.3.1992, the Sales Tax Officer made assessment under Section 10(4) of the Rajasthan Sales Tax Act, 1954 on the basis of Best Judgment Assessment rejecting the returns submitted by the assessee and estimated the turn over on the basis of whatever material was before the Assistant Commercial Taxes Officer.

(3.) THE assessment order dated 29.9.1995 to the extent it related to the assessment of sale tax, levy of interest on the additional amount was affirmed by the Deputy Commissioner (Appeals). However, the levy of penalty under Section 16(1)(e) of the Act was deleted entirely on the ground that assessment having been made on the basis of Best Judgment Assessment and the relevant documents being in possession of the Income Tax Department, there are no reasons for the assessee by which he could not file the exact return of his turn over but there being no intention to conceal the particulars of the return, on the basis of the material which was before the assessee, the levy of penalty was set aside by the Deputy Commissioner (Appeals) vide his Judgment dated 11.9.1996.