1972 (6) TMI 58

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.... and other papers seized from the dealer that he had suppressed his turnover, both the total turnover as well as the taxable turnover. When that discovery was made, the petitioner filed a revised return disclosing a total turnover of Rs. 1,32,425.92 and a taxable turnover of Rs. 50,627.90. The Commercial Tax Officer, by his order dated 30th September, 1966, made an order of assessment on the best of judgment basis. He rejected the return and computed the total turnover as well as the taxable turnover by the addition of Rs. 45,000 to the total turnover and Rs. 40,000 to the taxable turnover. He found that the returns submitted and the accounts produced were incomplete and unreliable. Then, he proceeded to state as follows: "Considering th....

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....mstances, the only humanly possible method of determining the turnover is to make an honest guess. It must have some rational basis and cannot be whimsical or arbitrary. In the original return, the appellant has disclosed the total turnover of Rs. 78,479.25 and the taxable turnover of Rs. 4,655.00. After the detection of the suppressions, he disclosed a total turnover of Rs. 1,32,425.92 and taxable turnover of Rs. 50,627.90. On a comparison of these two figures it is evident that the total turnover suppressed works out to about 66 per cent. and the taxable turnover by more than 11 times the declared taxable turnover (original taxable turnover declared is Rs. 4,655.00 and the revised taxable turnover is at 50,627.90). In view of the fact tha....