MADAN LAL ARORA versus EXCISE &. TAXATION OFFICER, AMRITSAR

MADAN LAL ARORA versus EXCISE &. TAXATION OFFICER, AMRITSAR

The best judgment assessment under Section 11(4) must be made within three years from the end of each quarter or period in respect of which the return was filed; since the period for which returns were filed expired on March 31, 1956, no assessment could lawfully be made after March 31, 1959 for those quarters.

Parties
Petitioner: Madan Lal Arora; Respondent: Excise & Taxation Officer, Amritsar
Jurisdiction
India
Judgment Date
07 April 1961
Procedural Posture
Writ Petition Under Article 32 of the Constitution of India / Supreme Court Original Jurisdiction, Final Disposition
Outcome
Petition allowed
Legal Topics
Writs Article 32, Sales Tax Assessment, Limitation for Best Judgment Assessment
Constitutional Law Taxation Law Writs Article 32 Sales Tax Assessment Limitation for Best Judgment Assessment

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Parties

Madan Lal Arora

Petitioner

Excise & Taxation Officer, Amritsar

Respondent

Procedural Posture

Writ Petition Under Article 32 of the Constitution of India / Supreme Court Original Jurisdiction, Final Disposition

Legal Issues

  1. 1 Whether under Section 11(4) of the Punjab General Sales Tax Act, 1948, best judgment assessment notice and assessment can be made beyond three years from the expiry of the relevant return period?

Ratio Decidendi

The best judgment assessment under Section 11(4) must be made within three years from the end of each quarter or period in respect of which the return was filed; since the period for which returns were filed expired on March 31, 1956, no assessment could lawfully be made after March 31, 1959 for those quarters.

Court Disposition

Petition allowed

Orders

  • A writ issued restraining the respondent from making any best judgment assessment on the petitioner for sales tax for any quarter of the financial years 1955 and 1956.
  • Petitioner awarded costs of the petition.