Best judgment assessment and works-contract tax liability upheld where the assessee produced no records or proof of prior taxation.

Best judgment assessment under the Bihar Finance Act was upheld where the assessee failed to file returns and produce supporting records despite repeated opportunities; the resulting findings were treated as factual and not amenable to reappraisal in writ jurisdiction. The plea that a sub-contractor in a works contract was not liable because the main contractor had already paid tax also failed, because no material was produced to show that the same turnover had been taxed in another person's hands or that the petitioner was excluded from liability. The assessment orders were sustained and no relief was granted.

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Issues: Whether the best judgment assessments made under the Bihar Finance Act, 1981 could be interfered with in writ jurisdiction, and whether the petitioner, as a sub-contractor in a works contract, could avoid tax liability on the plea that the main contractor had already paid tax and double taxation was impermissible.

Analysis: The petitioner failed to file returns in the ordinary course and did not produce supporting materials before the assessing authority despite repeated opportunities. In the absence of records, the assessing authority was justified in resorting to best judgment assessment, and the findings reached were essentially findings of fact not open to reappraisal in writ proceedings. The plea of double taxation also failed on the facts, because no material was produced to establish that the main contractor had discharged the tax liability for the very turnover in question or that the petitioner stood excluded from liability as a sub-contractor. The cited authorities on works contracts did not assist the petitioner on the facts found.

Conclusion: The writ petition was not maintainable on merits against the factual assessment made by the authority, and the challenge to the tax liability failed.

Final Conclusion: The assessment orders were sustained and the petitioner obtained no relief.

Ratio Decidendi: In writ jurisdiction, a best judgment assessment based on the assessee's failure to file returns and produce records will not be disturbed on disputed facts, and a plea against works-contract tax liability must be supported by material showing that the same turnover was already assessed and taxed in another person's hands.

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