Best judgment assessment upheld where missing challans and defective books supported year-long turnover estimation.

In best judgment assessment, suppression detected during road inspection, together with missing challans, incomplete account books and unexplained cash discrepancies, can justify estimation of suppressed turnover for the whole year rather than only the checked goods. Where the record shows no satisfactory explanation for such defects, the estimate is treated as supported by material and not arbitrary. In revisional jurisdiction, interference is warranted only if the assessment estimate lacks basis or is unreasonable. On these facts, restoration of the assessing authority's turnover estimate was upheld and the reduction made at first appeal was not sustained.

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Issues: Whether the Tribunal was justified in restoring the turnover estimated by the assessing authority and rejecting the reduction made by the first appellate authority in the best judgment assessment.

Analysis: The goods checked during road inspection were found without regular challan, gate pass, or bill, and the manager admitted that the challan produced was not issued from the regular challan book. The survey also showed that the books of account were not written up to date and that the cash balance did not tally. No satisfactory explanation was furnished for the missing challans or the discrepancies in the books and cash. On these facts, the suppression was not confined to the value of the checked goods alone and could reasonably support an estimate for the year as a whole. In revisional jurisdiction under section 11 of the U.P. Trade Tax Act, 1948, interference is warranted only if the estimate is arbitrary or without basis.

Conclusion: The Tribunal was justified in restoring the assessment made by the assessing authority, and the reduction made by the first appellate authority was not sustainable.

Final Conclusion: The revision failed because the estimated suppressed turnover was supported by the record and did not call for interference in revision.

Ratio Decidendi: In a best judgment assessment, suppression detected for one day, when supported by defects in account books and unexplained discrepancies, may justify estimation of suppressed turnover for the entire year, and such estimate will not be interfered with in revision unless it is arbitrary or basis.

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