TaxTMI 
TaxTMI 
1976 (9) TMI 152
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....y stated, are these: The assessee is a dealer in shoes. For the assessment year 1965-66 it (the assessee) filed returns for assessments under the U.P. Sales Tax Act and the Central Sales Tax Act. It returned a turnover of Rs. 27,190.56 for assessment under the U.P. Sales Tax Act and a turnover of Rs. 1,44,737.10 for assessment under the Central Sales Tax Act. At two surveys conducted by the sales tax authorities, it was found that the assessee had not maintained accounts regularly and that all its transactions were not shown in its books of account. The explanation of the assessee was also not believed by the sales tax authorities. The assessing officer disbelieved the accounts maintained by the assessee and made best judgment assessments ....
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....reliable, the assessing authority was entitled to make best judgment assessments and that the revising authority had no justification for interfering with the estimation of turnover made in best judgment assessments. The learned standing counsel also maintained that once the books of account of the assessee were rejected, the revising authority could not accept the turnovers returned by the assessee. The learned standing counsel strongly relied on the observations made by the Supreme Court in Commissioner of Sales Tax, Madhya Pradesh v. H.M. Esufali H.M. Abdulali[1973] 32 S.T.C. 77 (S.C.); A.I.R. 1973 S.C. 2266.There, the books of account of the assessee were rejected as unreliable and in the reassessment proceedings the assessing authorit....
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....These observations have no application to the power of the revising authority under the Sales Tax Act to substitute its discretion for the discretion of the assessing authority or the appellate authority in estimating the turnover. Under section 10 of the U.P. Sales Tax Act the revising authority may examine not only the legality but also the propriety of an order of the assessing authority or the appellate authority. If, in its opinion, the estimate made by the assessing authority or the appellate authority of the turnover of an assessee even in a best judgment assessment was not proper, the revising authority has power to substitute its estimate of such turnover, for the estimate made by the assessing authority or the appellate authority.....