Best judgment addition for suppressed turnover upheld after invoice omission and stock discrepancy supported probable suppression finding.

Best judgment addition for suppressed turnover was sustained where the assessee had failed to account for invoice No. 48 and the authorities found the accounts were not properly maintained. Section 16(1)(a) of the Tamil Nadu General Sales Tax Act, 1959 was applied to permit an addition on the basis of probable omission and stock discrepancy. The High Court, exercising limited supervisory jurisdiction, declined to interfere with the Tribunal's reasoned factual conclusion and upheld the addition, dismissing the revision in favour of the Revenue.

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Issues: Whether the addition of Rs. 42,24,413/- towards probable omission on account of suppressed turnover warranted interference in revision.

Analysis: The assessee admittedly failed to account for invoice No. 48 dated 03.12.2004 and the authorities below recorded a finding that the accounts were not properly maintained. Section 16(1)(a) of the Tamil Nadu General Sales Tax Act, 1959 confers power on the assessing authority to make an addition on a best judgment basis where suppression or omission is found. The Tribunal treated the stock discrepancy and the non-accounting of the invoice as sufficient material to support an of probable omission, and the High Court, exercising limited supervisory jurisdiction, declined to substitute its own view for a probable and reasoned factual conclusion of the last fact-finding authority.

Conclusion: The addition was upheld and the revision petition was dismissed, in favour of the Revenue.

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