RAMANUJAM, J.

The respondent herein is a dealer in firewood, and he submitted a return showing a taxable turnover of Rs. 1, 36, 257.99 for the assessment year 1961-62. But, before the final assessment could be made, there was an inspection of his place of business, as a result of which certain anamath account books were recovered. Based on the entries in the said anamath accounts, the assessing officer rejected the account books of the respondent and determined, to the best of his judgment, the taxable turnover to be at Rs. 2, 37, 548.48, thereby making an addition of Rs. 1, 01, 290.49 to the returned turnover. At the time of making that assessment, the assessing officer did not invoke his power under section 12(3) of the Madras General Sales Tax Act for levying a penalty for submission of an incorrect and false return.

The order of the assessing authority was later revised by the Deputy Commissioner by enhancing the taxable turnover of the respondent to Rs. 3, 00, 000, and this resulted in an addition of Rs. 1, 63, 742.01 to the turnover returned by the respondent. The enhancement made by the Deputy Commissioner was based on a revised estimate made by him on the basis of