1984 (2) TMI 307

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....a petition under article 226 of the Constitution of India. 2.. The material facts giving rise to this petition, briefly, are as follows: The petitioner carries on business of manufacture and sale of paints and varnish under the name and style, M/s. Indian Paints Industries, Indore. The petitioner is a registered dealer under the Madhya Pradesh General Sales Tax Act, 1958 (hereinafter referred t....

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.... the impugned orders no basis was disclosed for arriving at the estimated taxable turnover of Rs. 1,05,000. 4.. Having heard learned counsel for the parties, we have come to the conclusion that the contention advanced on behalf of the petitioner is wellfounded. In this connection we may usefully refer to the following observations of the Supreme Court in Commissioner of Sales Tax, M.P. v. H.M. ....

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....ose he must take into. consideration such materials as the assessing officer has before him, including the assessee's circumstances, knowledge of previous returns and all other matters which the assessing officer thinks will assist him in arriving at a fair and proper estimate.' (emphasis supplied*) Proceeding further the learned judge quoted with approval the observations of Din Mohammad, J....

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....he order of assessment is that the taxable turnover is determined at Rs. 1,05,000. The order of assessment does not refer to any material whatsoever on which the estimate is based. It is thus clear that the assessing authority made an assessment based on pure guess without reference to any evidence or material at all. Under the circumstances the order of assessment passed by respondent No. 1 and t....