Best-judgment turnover and tax-rate claims fail where the assessee lacks reliable accounts and proof of dissolution.

Best-judgment turnover estimates were upheld where the assessee failed to produce reliable books of account, supporting vouchers, or material showing that the estimate was arbitrary or excessive. The plea that the business firm had dissolved was also rejected because no dissolution deed or proof of date was produced, and the record supported continuation of business by the assessee as sole proprietor. A claim for taxation at a lower rate on the basis that coca-cola was no longer sold was similarly rejected for want of evidence. The assessment treatment adopted by the authorities was therefore sustained.

---

---

Issues: (i) Whether the estimate of turnover made by the assessing authority on a best-judgment basis was arbitrary or excessive. (ii) Whether the plea that the business firm had been dissolved could be raised and accepted at the appellate stage. (iii) Whether the sale in assessment year 1967-68 was liable to tax at 2% instead of 5% on the footing that coca-cola was no longer being sold.

Issue (i): Whether the estimate of turnover made by the assessing authority on a best-judgment basis was arbitrary or excessive.

Analysis: The assessments for the relevant years were made with reference to prior estimates and surrounding circumstances, including the dealer's own statement, the survey findings, the absence of reliable books of account, and the failure to produce supporting vouchers. The appellate authority found that the estimated daily sales for the later periods were consistent with the earlier accepted estimate and were not shown to be unreasonable.

Conclusion: The estimate of turnover on best judgment was upheld and the challenge to the quantum of sales failed.

Issue (ii): Whether the plea that the business firm had been dissolved could be raised and accepted at the appellate stage.

Analysis: The plea of dissolution had not been established by any dissolution deed or proof of date, and the record also contained statements and affidavits indicating that the business was being carried on by the assessee as sole proprietor. In these circumstances, the Tribunal declined to entertain the plea as a factual foundation for the claim was lacking.

Conclusion: The plea of dissolution was rejected and did not assist the assessee.

Issue (iii): Whether the sale in assessment year 1967-68 was liable to tax at 2% instead of 5% on the footing that coca-cola was no longer being sold.

Analysis: The claim was unsupported by material on record. The Tribunal therefore found no basis to disturb the rate applied for that assessment year, while noting that the lower rate had been applied in the other years.

Conclusion: The contention regarding tax rate was rejected.

Final Conclusion: The turnover estimates and tax treatment adopted by the authorities below were sustained, and the assessees' challenges to the assessments failed in entirety.

Ratio Decidendi: Where turnover is assessed on best judgment and the assessee fails to produce reliable accounts or prove a contrary factual basis, the appellate forum will not interfere with concurrent findings unless the estimate is shown to be arbitrary or excessive.

---