Revisional jurisdiction and turnover estimation: arbitrary interference with a reasoned appellate order was set aside.

Revisional jurisdiction under section 34 of the Tamil Nadu General Sales Tax Act cannot be used to replace a reasoned appellate estimate with an arbitrary one unless the appellate order is shown to be patently unsustainable or based on demonstrable impropriety. The appellate authority had considered the stock discrepancy and related defects and made only a modest ad hoc turnover addition instead of accepting the assessing officer's higher estimate. As no adequate material showed patent error in that exercise of discretion, the revisional authority's interference was unjustified. The appellate authority's order was restored and the revisional turnover addition was set aside.

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Issues: Whether the revisional authority was justified in interfering with the appellate authority's order under section 34 of the Tamil Nadu General Sales Tax Act in a matter concerning estimation of turnover and penalty.

Analysis: The appellate authority had examined the stock discrepancy and other defects and, instead of accepting the assessing officer's 71/2 per cent addition, made only a modest ad hoc addition. The revisional authority interfered mainly on the footing that a larger dealer would deserve a larger addition, but without any adequate material showing patent error in the appellate order. Revisional power under section 34 is not to be exercised mechanically or arbitrarily, but only to correct a demonstrable impropriety in the lower authority's order. The Court found no basis for disturbing the appellate authority's considered exercise of discretion.

Conclusion: The revisional interference was not justified and the assessee succeeded on the issue.

Final Conclusion: The appellate authority's order was restored and the turnover addition made by the revisional authority was set aside.

Ratio Decidendi: Revisional jurisdiction under section 34 cannot be used to substitute an arbitrary estimate for a reasoned appellate determination unless the appellate authority's discretion is shown to have been wrongly exercised or the order is patently unsustainable.

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