Reassessment under sales tax law may use best judgment and need not be initiated by the original assessing officer.

Under section 15 of the Bombay Sales Tax Act, 1953, reassessment may proceed on a best judgment basis where the statute confers valid jurisdiction, and the power is not limited to a purely mechanical exercise. Reassessment proceedings are also not confined to the original assessing officer; an officer other than the one who completed the original assessment may initiate proceedings if otherwise duly authorised under the Act. The Tribunal's narrower view on both points was rejected, and the references were answered against the assessee.

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Issues: (i) Whether an authority acting under section 15 of the Bombay Sales Tax Act, 1953, can resort to best judgment assessment; and (ii) whether proceedings under section 15 can be initiated by a Sales Tax Officer other than the officer who made the original assessment merely because the original assessment was made by a different officer.

Issue (i): Whether an authority acting under section 15 of the Bombay Sales Tax Act, 1953, can resort to best judgment assessment.

Analysis: The question stood covered by an earlier decision holding that reassessment proceedings under section 15 may be undertaken on a best judgment basis. The statutory power of reassessment was not confined to a pure arithmetical or mechanical exercise, and best judgment assessment was treated as competent within the reassessment jurisdiction conferred by the Act.

Conclusion: The Tribunal was not correct in law in holding that an authority acting under section 15 of the Bombay Sales Tax Act, 1953, cannot resort to best judgment assessment. The answer was in the negative, in favour of Revenue.

Issue (ii): Whether proceedings under section 15 can be initiated by a Sales Tax Officer other than the officer who made the original assessment merely because the original assessment was made by a different officer.

Analysis: The question was confined to whether reassessment must invariably be initiated only by the officer who completed the original assessment. The statutory scheme did not support such a rigid limitation. An officer other than the original assessing officer could initiate proceedings if he was validly clothed with jurisdiction or authority under the Act. The Tribunal's narrower finding on want of jurisdiction solely because the original assessment had been made by another officer was therefore not sustainable on that ground alone.

Conclusion: The Tribunal was not correct in law in holding that the Sales Tax Officer (VIII), Enforcement Branch, Bombay, could not initiate proceedings under section 15 merely because the original assessment had been made by the Sales Tax Officer, C Ward, Bombay. The officer could initiate such proceedings if validly authorised, in favour of Revenue.

Final Conclusion: The references were answered against the assessee and the Tribunal's view on the two referred questions was rejected to the extent indicated.

Ratio Decidendi: Reassessment under section 15 is not confined to the original assessing officer, and best judgment assessment may be made in valid reassessment proceedings where the statute confers the necessary jurisdiction or authority.

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