RAMANUJAM, J.

The assessee in this case is a dealer in chicory, and for the assessment year 1963-64, he returned a taxable turnover of Rs. 1, 20, 674.06. At the stage of the assessment proceedings, the assessing authority called for the account books and found that the sales of chicory to the Coffee Board to the extent of Rs. 3, 71, 844.45 had been omitted to be included in the assessee's return. When this was pointed out to the assessee, the assessee explained that the supplies to the Coffee Board were made on the basis of pro forma invoice and that unless the account is settled between him and the Coffee Board finally, the same could not be included in the return. The assessing officer rejected this explanation and included Rs. 3, 71, 844.45 in the turnover return and completed the assessment. He also levied a penalty of Rs. 27, 850 under section 12(3) of the Tamil Nadu General Sales Tax Act for the non-inclusion of the sum of Rs. 3, 71, 844.45 in the return submitted by him. The assessee thereafter took the matter on appeal to the Appellate Assistant Commissioner and contended before him that the turnover of Rs. 3, 71, 844.45 could not be brought to charge in the asse