https://www.taxtmi.com/caselaws?id=150766 In best judgment assessment, the estimate must rest on a bona fide and rational basis drawn from proved facts, not on imagination or arbitrary presumption. The Tribunal accepted that the enhanced purchases could be inferred as purchases from registered dealers because the surrounding facts supported that view, including the nature of the goods, the assessee's usual dealings with oil mills, and the absence of transactions with unregistered dealers in the books. On that reasoning, the Tribunal's conclusion was upheld, and the penalty could not survive where it was founded on an erroneous presumption. en-us Thu, 20 Feb 1975 00:00:00 +0530 Wed, 22 May 2013 14:35:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=150766 In best judgment assessment, the estimate must rest on a bona fide and rational basis drawn from proved facts, not on imagination or arbitrary presumption. The Tribunal accepted that the enhanced purchases could be inferred as purchases from registered dealers because the surrounding facts supported that view, including the nature of the goods, the assessee's usual dealings with oil mills, and the absence of transactions with unregistered dealers in the books. On that reasoning, the Tribunal's conclusion was upheld, and the penalty could not survive where it was founded on an erroneous presumption. Case-Laws VAT and Sales Tax Thu, 20 Feb 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=150766