Best judgment assessment stands where turnover is supported by record and the estimate is not arbitrary.

A best judgment turnover assessment is valid where it is supported by material on record and is not arbitrary or capricious, even though some guess-work is involved. The revising authority relied on the assessee's past turnover, the survey of the premises, and the rejection of the explanation offered after the books were rejected. The assessment was not invalid merely because the order did not expressly catalogue each item of material, so long as the record showed that relevant materials had been considered. The turnover fixed by the Judge (Revisions) was accordingly upheld in favour of the department.

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Issues: Whether there was material in support of the turnover assessed by the Judge (Revisions).

Analysis: The assessee's books had been rejected, and the revising authority fixed turnover after considering the assessee's earlier turnover, the survey of the premises, and the rejection of the explanation offered. In a best judgment assessment, some element of guess-work is inevitable, but the assessment must not be arbitrary or capricious. The fact that the order did not expressly set out each material did not invalidate the assessment where the materials were on record and appear to have been taken into account.

Conclusion: There was material in support of the turnover assessed by the Judge (Revisions), and the answer was in the affirmative, against the assessee and in favour of the department.

Ratio Decidendi: A best judgment assessment is valid if it is supported by material on record and is not arbitrary, even where the assessing authority does not expressly catalogue every item of material in the order.

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