Best judgment assessment unavailable under section 14(4) for escaped turnover; reassessment is limited to proved escape.

Section 14(4) of the Andhra Pradesh General Sales Tax Act, 1957 was held not to authorise a best judgment assessment for escaped turnover. The provision was distinguished from sub-sections (1) and (3), which expressly permit best judgment assessment, because sub-section (4) is confined to turnover or fee actually established to have escaped assessment or levy after notice and inquiry. Inferential estimates and reassessment by best judgment were therefore outside its scope, and the contrary Madhya Pradesh view was dissented from.

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Issues: Whether section 14(4) of the Andhra Pradesh General Sales Tax Act, 1957 authorises the assessing authority to make a best judgment assessment in respect of turnover said to have escaped assessment.

Analysis: Section 14 draws a clear distinction between the power under sub-sections (1) and (3), which expressly permit assessment to the best of judgment, and sub-section (4), which only empowers assessment of turnover that has escaped assessment or levy of the correct fee after notice and inquiry. The language of sub-section (4) was treated as materially different from that of the best judgment provisions, indicating that the Legislature confined that sub-section to turnover definitely shown to have escaped assessment and did not extend it to inferential estimates or best judgment reassessment. The contrary view adopted in the cited Madhya Pradesh decision was expressly dissented from.

Conclusion: Section 14(4) does not authorise a best judgment assessment; the power under that provision is confined to assessing turnover actually established to have escaped assessment, and the assessee succeeded.

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