Best judgment assessment upheld where evidence of suppression and unaccounted sales supported the estimate under sales tax law.

A best judgment assessment under the Punjab General Sales Tax Act was upheld where the dealer had filed returns, produced account books and was heard, but the Assessing Authority relied on relevant material such as unaccounted sales, test purchases, past suppression and disclosed turnover. The assessment was treated as one under section 11(3), supported by evidence and surrounding circumstances rather than suspicion or arbitrariness, and therefore was justified in law and within jurisdiction. Because the assessment fell under section 11(3), the limitation issue raised on the third referred question did not arise.

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Issues: Whether the best judgment assessment made against the assessee under section 11(3) of the Punjab General Sales Tax Act, 1948 was justified in law and within jurisdiction.

Analysis: The assessment was made after the assessee filed returns, produced account books, and was heard by the Assessing Authority. The record showed that the authority considered relevant material, including unaccounted sales, test purchases, past history of suppression, and the turnover disclosed by the dealer. The assessment was therefore treated as one under section 11(3), not section 11(4), and the resulting estimate was supported by evidence and relevant circumstances rather than mere suspicion or arbitrariness. Since the assessment was under section 11(3), the question of limitation raised by the third referred question did not arise.

Conclusion: The best judgment assessment was valid and justified in law, and the answer to the referred question was in the affirmative, in favour of the Revenue.

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