Best judgment assessment and limitation raised a referable question of law under sales tax procedure.

A question of law arose on whether the Tribunal had to state the case and refer the common issue of best judgment assessment and limitation to the High Court under section 42(2) of the Haryana General Sales Tax Act, 1973. The Court found that the assessment years in question raised a bona fide issue as to whether the Assessing Authority had made the assessments to the best of its judgment and within the prescribed limitation period. As such a legal question existed, the Tribunal was directed to state the case and make the reference.

---

---

Issues: Whether the Tribunal was required to state the case and refer the common question of law relating to best judgment assessment and limitation for the High Court's opinion.

Analysis: The petitions were under section 42(2) of the Haryana General Sales Tax Act, 1973. The Court found that the assessment for the relevant years had been completed on dates which gave rise to a bona fide question whether the assessment was made to the best of the Assessing Authority's judgment and whether it was within the prescribed period of limitation. Since the existence of such a question of law justified a reference, the Tribunal was directed to state the case.

Conclusion: The question of law was held to arise and the Tribunal was directed to refer it to the High Court, in favour of the assessee.

---