Appellate enhancement of turnover is impermissible absent statutory power, while best judgment assessment stands on factual findings.

In an assessee's appeal, the appellate tribunal cannot enhance the assessed turnover unless statutory power authorises that course; where no such power or supporting rule is shown, the turnover must remain confined to the figure originally determined by the department. The document also states that a challenge to a best judgment assessment, resting wholly on factual appreciation, will not justify interference in the absence of a legal basis for disturbing the departmental estimate. The practical effect is that unauthorised enhancement is impermissible, while a fact-based best judgment assessment stands unless shown to be legally unsustainable.

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Issues: (i) Whether, in an appeal by the assessee, the Appellate Tribunal could enhance the turnover when it was not the assessing authority. (ii) Whether interference was called for with the assessment made on the best judgment principle.

Issue (i): Whether, in an appeal by the assessee, the Appellate Tribunal could enhance the turnover when it was not the assessing authority.

Analysis: The Tribunal had increased the turnover by adding an additional amount to the figure determined by the department. The order records that the Tribunal did not exercise the power conferred by Section 12A, sub-section (5), second proviso, and no rule was shown to justify the procedure adopted. It was also noticed that no appeal by the department was provided under Section 12A.

Conclusion: The Tribunal had no power to enhance the turnover in the assessee's appeal, and the turnover was restricted to the figure originally determined by the department.

Issue (ii): Whether interference was called for with the assessment made on the best judgment principle.

Analysis: The challenge to the best judgment assessment turned entirely on factual appreciation, and no ground was found to disturb the departmental estimate.

Conclusion: No interference was warranted with the best judgment assessment.

Final Conclusion: The turnover enhancement made by the Tribunal was set aside, while the assessment on the best judgment principle was sustained, resulting in dismissal of the petition with modification.

Ratio Decidendi: In an assessee's appeal, the appellate authority cannot enhance the assessed turnover in the absence of statutory power, and factual findings on a best judgment assessment will not be disturbed without a legal basis for interference.

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