https://www.taxtmi.com/caselaws?id=330283 Section 7(3) of the U.P. Trade Tax Act, 1948 permits rejection of a return only when it appears incorrect or incomplete, and any best judgment assessment must rest on material with a reasonable nexus to turnover. A rough or provisional balance sheet seized during survey, by itself, was insufficient to displace audited accounts or justify rejection of books without recorded reasons and contemporaneous enquiry. The statutory best judgment power had to be exercised on an empirical and reasoned basis, which was not done here. The rejection of accounts and the assessment founded solely on the provisional balance sheet were therefore unsustainable, and the matter was remanded for fresh consideration in accordance with law. en-us Mon, 04 Jul 2016 00:00:00 +0530 Fri, 22 Jul 2016 13:13:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=330283 Section 7(3) of the U.P. Trade Tax Act, 1948 permits rejection of a return only when it appears incorrect or incomplete, and any best judgment assessment must rest on material with a reasonable nexus to turnover. A rough or provisional balance sheet seized during survey, by itself, was insufficient to displace audited accounts or justify rejection of books without recorded reasons and contemporaneous enquiry. The statutory best judgment power had to be exercised on an empirical and reasoned basis, which was not done here. The rejection of accounts and the assessment founded solely on the provisional balance sheet were therefore unsustainable, and the matter was remanded for fresh consideration in accordance with law. Case-Laws VAT and Sales Tax Mon, 04 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=330283