Best judgment assessment on remand must be decided independently, while noting the High Court's books-of-account observation.

In proceedings remitted for fresh disposal, the Tribunal was to assess the quantum of best judgment assessment independently while taking due note of the High Court's observation on the non-production of books of account. The estimate of gross and taxable turnover remained for the Tribunal to examine on remand, and it was not to be constrained by any other observation that would limit the basis of assessment. The matter was to be decided in accordance with law and the settled principles governing best judgment assessments. Fresh directions were issued to the Tribunal, and the special leave petition was disposed of.

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Issues: Whether, in proceedings remitted for fresh disposal, the Tribunal should be left free to determine the quantum of best judgment assessment while taking note of the High Court's observation regarding the non-production of books of account.

Analysis: The estimate of gross and taxable turnover was treated as a matter for the Tribunal to examine on remand. The Tribunal was directed to take due note of the High Court's observation on the books of account, but not to be constrained by any other observation that might limit its choice of the basis of assessment. The matter was to be decided in accordance with law and the settled principles governing best judgment assessments.

Outcome: Directions were issued to the Tribunal for fresh disposal on remand, and the special leave petition was disposed of.

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