Best judgment reassessment may cover entire turnover when original assessment rests on unreliable account books.

Section 21(1) of the U.P. Sales Tax Act permits reassessment where any part of the turnover has escaped assessment, and its explanation preserves best judgment assessment power in both assessment and reassessment proceedings. If the original assessment rested on unreliable account books, the foundation of that assessment is displaced, and the assessing authority is not restricted to the escaped items alone. In that situation, reassessment may extend to the entire turnover and be made on a best judgment basis. The provision is applied to prevent the reassessment power from being narrowed to cases involving total escapement only.

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Issues: Whether, in proceedings under section 21 of the U.P. Sales Tax Act, the assessing authority can make a best judgment reassessment where only part of the turnover had escaped assessment and an original assessment had already been made.

Analysis: Section 21(1) authorises assessment or reassessment where the whole or any part of the turnover has escaped assessment, and the explanation preserves the power to make an assessment to the best of judgment. The relevant inquiry is whether the earlier assessment can stand on the facts of the case. Where the original assessment was made on account books later found to be unreliable, the foundation of that assessment is displaced and the assessing authority is not confined to the escaped items alone. In such a situation, the reassessment may extend to the entire turnover and may be made on a best judgment basis. The explanation applies both to assessment and reassessment proceedings, and the object of the provision would be defeated if the power were confined only to cases where the whole turnover had escaped assessment.

Conclusion: A best judgment reassessment was permissible under section 21(1) on the facts of the case, and the question was answered against the assessee.

Ratio Decidendi: Where an original assessment is shown to rest on unreliable material and the reassessment proceeding under section 21 is properly initiated for escaped turnover, the assessing authority may reassess the entire turnover and determine it to the best of its judgment.

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