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of <h1>Supreme Court Upholds Best-Judgment Sales Tax Assessments, Emphasizes Reasonable Estimates</h1> The Supreme Court addressed appeals regarding sales tax assessments for the period 1964-65, which were best-judgment assessments challenged under Article ... - Issues involved: Sales tax assessments for the period 1964-65, challenge under Article 226 of the Constitution, re-assessment for the years in question, best-judgment assessments, plea of limitation, assessment proceedings for 1965-66 and 1966-67, materials for re-assessment, conditions for best-judgment assessment.In the present case, the Supreme Court addressed the appeals concerning sales tax assessments for the period 1964-65. The assessments in question were best-judgment assessments, which were challenged in the High Court under Article 226 of the Constitution. The High Court set aside the assessments and allowed for the re-assessment for the years in question. The State did not appeal the assessment for the year 1963-64, leaving three years under consideration before the Supreme Court.The Supreme Court found no reason to interfere with the High Court's order but provided certain clarifications. It directed that the re-assessment for 1964-65 should proceed without any plea of limitation, considering the amended provision under Section 21(2) of the U.P. Sales Tax Act. The Court emphasized that the re-assessment officer should carefully consider the materials presented, with the option to accept or reject them for valid reasons. If the conditions for a best-judgment assessment are met, it should be based on a reasonable estimate rather than speculative grounds, ensuring an intelligent and well-grounded decision-making process.Regarding the assessment proceedings for 1965-66 and 1966-67, which had already been completed and appealed, the Supreme Court stated that it was not concerned with those outcomes. The Court highlighted the importance of making informed estimates in best-judgment assessments, emphasizing the need for a well-grounded approach rather than relying on pure surmises. Ultimately, the appeals were dismissed with the specified directions, and no costs were awarded in this matter.
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