Best judgment assessment on check-post declarations stands where the assessee gives no rebuttal evidence despite denied cross-examination.

Where books and returns are rejected for material defects, additions in a best judgment assessment can validly rest on check-post declarations if those declarations disclose purchases not reflected in the accounts. The assessee's denial of the transactions, without independent rebuttal evidence, was insufficient to displace the declarations. The court applied the settled rule that the burden to rebut such material lies on the assessee, and held that lack of cross-examination alone does not invalidate the assessment when no contrary evidence is produced. The additions were therefore upheld and the assessment order remained undisturbed.

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Issues: Whether additions made in best judgment assessment on the basis of check-post declarations were sustainable when the assessee was not permitted to cross-examine the consignors and had not produced rebuttal evidence.

Analysis: The assessment proceeded after the books and returns were rejected on the basis of material defects and the check-post declarations disclosed purchases not reflected in the accounts. The assessee denied the transactions and sought cross-examination, but did not adduce any independent material to disprove the declarations. A best judgment assessment may be founded on rational material, and the assessing authority is not required to substitute an arbitrary estimate for one based on relevant evidence. The court applied the settled principle that the burden to rebut check-post declarations rests on the assessee, and that absence of cross-examination alone does not invalidate the assessment where no rebuttal evidence is produced.

Conclusion: The additions based on the check-post declarations were upheld, and the challenge founded on denial of cross-examination failed.

Final Conclusion: The revision was rejected and the assessment order, as sustained by the Tribunal, remained undisturbed.

Ratio Decidendi: Where accounts are rejected and the assessee produces no rebuttal material, additions in a best judgment assessment may validly be made on the basis of check-post declarations, and the mere absence of cross-examination does not render the assessment unsustainable.

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