Best judgment assessment must rest on relevant material and independent scrutiny; arbitrary turnover estimation cannot be sustained.

A best judgment sales tax assessment must be based on relevant material and independent application of mind; an estimate with no nexus to the material available is arbitrary and cannot stand. The dealer had not produced accounts, so estimation was permissible, but the Tribunal was found to have affirmed the 1972-73 turnover without independently examining the record for that year. The assessment was therefore not sustained, and the matter was remitted for fresh consideration and rehearing by the Tribunal.

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Issues: Whether there was material to support the determination of gross turnover at Rs. 1,00,000 for the assessment year 1972-73, and whether the assessment was sustained without independent application of mind.

Analysis: The dealer had not produced accounts before the Sales Tax Officer. The assessment could therefore be completed to the best of judgment, but such estimation had to be made on relevant materials and with due application of mind. The Tribunal was found to have confirmed the assessment for the year 1972-73 without independently considering the material available for that year. An estimation unsupported by nexus to relevant material was treated as arbitrary.

Conclusion: The question was answered in the negative and in favour of the dealer. The Tribunal was directed to pass a fresh order under section 24(5) of the Act and to hear the second appeal afresh.

Final Conclusion: The determination of gross turnover for the relevant assessment year was not sustained, and the matter was sent back for fresh consideration by the Tribunal.

Ratio Decidendi: A best judgment assessment must rest on relevant material and independent application of mind, and an estimation lacking nexus to such material is arbitrary and unsustainable.

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