1971 (2) TMI 107

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....t, 1964, a provisional assessment notice was sent to the petitioner wherein a proposal was made to assess him in the best judgment method since the slips which were discovered in the course of the search were the sole material on which the department could act and that it was felt that there was a possible escapement of the assessable turnover and hence the tax. The petitioner replied on 25th August, 1964, stating that his account books were maintained in the regular course of business and reflected all his dealings and that he had nothing to do with the slips. The revenue however proceeded with the notice of provisional assessment and ultimately he was assessed for the years 1963-64 and 1964-65. In particular, for the year 1964-65 the prov....

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....m and which he could refute, the taxing authorities cannot suo motel rely upon information gathered by them and assess a dealer capriciously. But in the reply he gave on 25th August, 1964, the contention of the petitioner was one which ought to be normally accepted. In his reply dated 25th August, 1964, the petitioner while questioning the authority of the taxing authority to apply the best judgment method, has taken meticulous care to object to the very process of assessment. There is, however, no whisper in that letter that as and from 31st July, 1964, he discontinued the business and that he was stating his objections to the proposal because he was called upon to do so. This circumstance is a tilting one and the present excuse put forwar....