Best judgment assessment must rest on fair material, not arbitrary estimates; unsupported turnover enhancement was set aside.

Best judgment assessment under the Bengal Finance (Sales Tax) Act must be a fair and honest estimate based on material, including the assessee's records, prior returns, and relevant circumstances. A capricious or excessive enhancement unsupported by recorded reasons cannot stand. Here, the steep increase in gross turnover was disproportionate to the books and earlier assessments, and the minor discrepancy in returns did not justify the departure. The assessment, appellate, and revisional orders were set aside, and the matter was remanded for fresh assessment on available materials.

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Issues: Whether the ex parte best judgment assessment made under the sales tax law was arbitrary and unsupported by material, warranting interference and remand for fresh assessment.

Analysis: Section 11(1) of the Bengal Finance (Sales Tax) Act, 1941 empowers the assessing authority to assess to the best of his judgment where returns are not furnished properly or are not satisfactory. Such power does not authorise a capricious or wild estimate. The assessment must be a fair estimate based on some material, including the assessee's circumstances, prior returns, and other relevant facts. Here, the assessed gross turnover was raised to a figure wholly disproportionate to the books of account and prior years' assessments, without any recorded basis for such a steep enhancement. The marginal discrepancy in the returns did not justify the large departure made by the assessing authority, and the appellate and revisional authorities failed to cure that defect by independent reasoning.

Conclusion: The best judgment assessment was held to be arbitrary and unsustainable. The assessment, appellate, and revisional orders were set aside and the matter was remanded for fresh assessment on the basis of available materials.

Ratio Decidendi: A best judgment assessment must rest on a fair and honest estimate founded on material and relevant circumstances, and not on an arbitrary or excessive guess divorced from the assessee's records and past assessments.

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