Best judgment assessment upheld where the Tribunal's estimate of suppressed turnover was found neither perverse nor arbitrary.

On revision under section 41 of the Kerala General Sales Tax Act, the High Court declined to interfere with a best judgment assessment based on check-post declarations after rejection of the books of account and returns. The Tribunal had reasoned that the additional addition equal to the suppressed turnover, including gross profit, was justified because the earlier lump-sum reduction was not supported and the higher estimate was not excessive. The estimation was treated as a factual finding founded on the material on record, and the court held that it was neither perverse nor arbitrary. The revision was therefore rejected and the Tribunal's estimation upheld.

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Issues: Whether, in a revision under section 41 of the Kerala General Sales Tax Act, 1963, the High Court should interfere with the Tribunal's best judgment assessment and estimation of addition equal to the suppressed turnover for probable omission and suppression in the taxable turnover.

Analysis: The assessment was made on the basis of check-post declarations after rejection of the books of account and returns. The Tribunal, while modifying the first appellate authority's order, reduced the further addition from twice the suppressed turnover to an amount equal to the suppressed turnover including gross profit, and gave reasons for concluding that the earlier reduction to a lump sum was not justified and that the higher addition was excessive. The order of estimation was treated as a finding of fact based on material available, and the best judgment assessment was found neither perverse nor arbitrary. In revision, the court declined to substitute a different estimate or to replace one best judgment assessment with another.

Conclusion: The Tribunal's estimation was upheld and the revision petition was rejected.

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