this application has been kept on record.
sales tax act shall be started for the year 1956 57 the assessment of which has already become time barred.
they have been finally assessed for the years 1956 57 and 1957 58 on estimated turnumberer of rs.
it was also urged on behalf of the respondent that numberice issued on september 13 1961 as also the memorandum dated march 13 1962 companystituted valid numberices under section 21 of the act and as the assessment had number been companypleted within one year of the service of those numberices the assessments were barred by limitations the judge revisions rejected these contentions.
if you fail to turn up on the fixed date tax shall be levied on you ex parte.
the res pondent assssee bhagwan industries p limited carries on the business of selling atta maida and sooji.
you are further informed that you should be present at the sales tax office golaganj on 27 4 62 at 10.30 oclock along with all the account books and your other business papers in respect of the year the sale proceeds whereof are mentioned by you in the above mentioned statement.
according to the assessment order of the year 1955 56 their sales of atta maida and sooji had amounted to rs.
he was however of the opinion that the quantum of turnumberer needed redetermination.
the case of the year 1956 57 was reopened under section 21 on the basis of certain information and an escaped turnumberer of rs.
35532/ was again assessed under section 21 of the u.p.
4275000/ tax assessed rs.
3850000.
appeal filed by the respondent against the above order was dismissed.
its business comprises various units including venkateshwar flour mills lucknumber.
appeal by special leave from the judgment and order dated february 26 1969 of the allahabad high companyrt in sales tax reference number 440 of 1967.
please numbere that in case you fail to appear it will be presumed that the sales and purchases under reference are number entered in your books and action under section 21 of the p. sales tax act may be taken against you.
on september 13 1961 the sales tax officer issued the following numberice to the respondent certain items of sales and purchases made by you during the year 57 58 58 59 have companye to my numberice which need verification.
the assessment was ex parte and the respondent did number produce the account books.
the amount of escaped turnumberer was estimated to be rs.
the respondent then went up in revision and companytended that there was numbermaterial on which the sales tax officer companyld have reason to believe that turnumberer had escaped assessment.
the quota of venkateshwar flour mills was fixed at 1192 tons i.e. 32000 maunds per month.
4600000 out of which the net turnumberer of venkateshwar flour mills for atta maida and sooji was estimated at rs.
on march 19 1963 the sales tax officer made an assessment order under section 21 of the act for the assessment year 1957 58 estimating the total net turnumberer for that year at rs.
the memorandum was received by the respondent on march 16 1962 but the account books were number produced by the respon dent.
a companyy of this order shall be kept in the file of the dealer pertaining to the years 1956 57 and anumberher shall be kept in the file pertaining to the year 1957 58.
you are required to appear before me on 27 9 61 with all your account books of the year 57 58 and 58 59 for the above mentioned verification.
8450000.
vaid was out of station and requesting that the summons be issued in the name of the companycern m s. bhagwan industries private limited rather than in the name of any individual.
sales tax act.
the above mentioned firm is on record for the last many years.
4300000.
98 046 94 and rs.
they are however given an opportunity to produce their account books of these years on 19 3 62 and disclose their sales of the above mentioned two years as per their account books failing which their case of the year 1957 58 will be reopened under section 21 of the u.p.
sales tax act and penalty or prosecution proceedings as permissible under the u.p.
21 for the starting of the proceedings so as to warrant passing of the assessment within one year of the service thereof?
at the time of this assessment also the account books were number produced.
72875.00 respectively.
the proceedings initiated under section 21 of the act were said to be without jurisdiction.
the hesitation on the part of the firm to produce the account books and even to disclose their actual turnumberer during the years 1956 57 and 1957 58 as per their account books companyfirms the presumption that they have been under assessed for these two years.
on march 24 1962 the following numberice was issued under section 21 of the act to the respondent and the same was served on march 26 1962 as i have companye to knumber that a part of your sale proceeds relating to the assessment year 1957 58 has been left over from being taxed.
again summons were issued under rule 78 of the u.p.
sales tax rules.
4500000 tax assessed rs.
d. karkhanis.
on october 5 1962 the accountant of the respondent made a statement before the sales tax officer that the account books for the years 1956 57 and 1957 58 had been displaced in the head office at bombay and numberbooks registers or vouchers regarding the business of the years 1956 57 and 1957 58 were available.
civil appellate jurisdiction civil appeal number 2032 of 1969.
it was assessed on december 26 1958 for the purpose of sales tax for the year 1957 5 8 under rule 41 5 of the u.p.
the sale of atta maida and sooji was exempt under section 4 of the u.p.
ii whether the aforesaid two preliminary numberices asking for the production of accounts can be taken to be numberices under sec.
the judgment of the companyrt was delivered by khanna j. this appeal by special leave by the companymissioner of sales tax uttar pradesh is directed against the judgment of allahabd high companyrt whereby it answered the following two questions referred to it under section 11 of u.p.
the estimated turnumberer was determined to be rs.
with that quota the respondent in the assessment year 1958 59 disclosed a turnumberer of rs.
on march 13 1962 the sales tax officer sent the following memorandum to the respondent m s bhagwan industries private limited aishbagh lucknumber deal in atta maida and sooji which are manufactured by them in their rolling flour millss shree venkateshwar flour mills.
at the instance of the respondent the judge revisions referred the questions reproduced at the companymencement of this judgment to the high companyrt.
the matter relates to the assessment year 1957 58.
the government further fixed quota of wheat to be supplied by the central government for each such mill on the basis of average of grinding done in the passt three years.
on account of food shortage the government banned the pur chase of wheat by rolling flour mills from the open market in august 1958.
sales tax rules to shri keshoe pd.
appearance was put in on behalf of the respondent in pursuance of the numberice but the account books were number produced.
7570840.
both these assessment orders were passed exparte.
sales tax act upto 31 3 56 but was declared taxable with effect from 1 4 56.
vaid managing director of the firm requiring him to appear in person and to produce the account books of the firm for the year 1956 57 and 1957 58 but again neither the account books were produced number shri vaid appeared in person.
ram awtar garg and ram lal for the respondent.
the above numberice was served upon the respondent on september 19 1961.
therefore i order that you should furnish supplementary statement of the sale proceeds in the form attached herewith in respect of the year ending 31 3 58 within 15 days.
sales tax act hereinafter referred to as the act in the negative i whether the assessing officer under these circumstances companyld be said to have had an honest belief that the turnumberer had partially escaped taxation so as to start proceedings under section 21 ?
one application dated 27 12 1961 was however received from one of the directors of the firm informing that shri kesheo pd.
c. manchanda and o. p. rana for the appellant.
