Best judgment assessment upheld where notice was served and no return was filed; review plea rejected as inconsistent.

Where an assessee was served with notice to file a return but failed to do so, the assessing authority was entitled to complete the assessment on a best judgment basis using the materials on record, including the Inspector of Taxes report derived from inter-State check-post materials. A plea based on an alleged pending review request was rejected because it did not fit the writ petition pleadings. The writ petition was nevertheless examined on merits despite the availability of an appellate remedy, and the assessment orders were upheld as sustainable. The challenge failed and interim protection was vacated.

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Issues: Whether the assessment orders could be sustained when the assessee had been served with notice but failed to file returns, and whether the petitioner was entitled to any relief on the basis of the alleged pending review request.

Analysis: The records showed that notice requiring filing of returns had been served on the petitioner for the relevant assessment year and that no return was filed. In that situation, the assessing authority was entitled to complete the assessment on best judgment basis. The assessment was made after considering the Inspector of Taxes report, which was founded on materials collected from the inter-State check-post. The plea regarding a pending review application was not accepted because it was inconsistent with the writ petition pleadings. The writ petition was also decided on merits despite the availability of an appellate remedy.

Conclusion: The assessment orders were held to be sustainable and the challenge failed.

Final Conclusion: The writ petition was dismissed and the interim protection was vacated.

Ratio Decidendi: Where an assessee, after service of notice, fails to file the required return, the assessing authority may lawfully proceed to complete the assessment on best judgment basis on the materials available on record.

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