Best judgment assessment turnover estimate reduced where books were destroyed and business had closed

Turnover estimated in a best judgment assessment under the U.P. Sales Tax Act was examined on the limited question of quantum, as rejection of the books of account remained unchallenged. The court found the estimate excessive for two assessment years because of the death of the sole proprietor, destruction of books, and closure of business, and reduced the turnover accordingly. For the third assessment year, no interference was warranted and the revision was dismissed.

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Issues: Whether the turnover fixed in best judgment assessment under the U.P. Sales Tax Act required reduction for the assessment years 1978-79, 1979-80 and 1980-81.

Analysis: The rejection of the books of account was not challenged and stood maintained. The dispute was confined to the quantum of turnover estimated by the authorities. On the facts, including the death of the sole proprietor, destruction of books and the closure of business, the estimate for two assessment years was found to be excessive, while no interference was warranted for the third year.

Conclusion: The turnover for assessment years 1978-79 and 1979-80 was reduced to Rs. 30,000 each, and the revision for assessment year 1980-81 was dismissed.

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