Best judgment assessment blocks escaped-turnover reassessment unless fresh material proves genuine omission from the original estimate.

A turnover item that falls within an original best judgment assessment cannot later be treated as escaped turnover for reassessment merely because it was not separately shown in the return. Where the initial assessment under the Mysore Sales Tax Act estimated taxable turnover on a broad best judgment basis, the later invocation of reassessment was unjustified absent fresh material showing true omission from that determination. The reassessment was therefore invalid, and the consequential penalty could not stand. The principle applied is that an estimated assessment already covering the relevant turnover bars reopening under escaped-assessment provisions unless the revenue proves genuine non-assessment of the item.

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Issues: Whether turnover alleged to have escaped assessment could be brought to tax under section 12-A of the Mysore Sales Tax Act, 1957, when the original assessment had already been made on best judgment under section 12(3) of the Act and had determined the taxable turnover on an estimated basis.

Analysis: The original assessment was made by applying a best judgment formula to the assessee's books and working expenses, resulting in a taxable turnover substantially higher than the returned turnover. The additional amount later sought to be assessed was of a kind that would have been absorbed within the turnover already estimated in the original best judgment assessment. In these circumstances, it could not be treated as turnover escaping assessment merely because it had not been separately included in the return. Accordingly, the reopening under section 12-A was not justified, and the consequential penalty could not survive.

Conclusion: The reassessment was invalid and the levy of penalty was unsustainable, both being set aside in favour of the assessee.

Ratio Decidendi: Where an original best judgment assessment already covers the relevant turnover on an estimated basis, an item falling within that assessed turnover cannot later be treated as escaped turnover for reassessment unless fresh material shows that it was truly omitted from the original determination.

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