1985 (11) TMI 215

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....and completed the assessment on best judgment by making an estimate on the basis of consumption of current for the relevant year and fixing the turnover accordingly at Rs. 1,81,200. This is what the Sales Tax Officer says in his order: "The quantity of 2,230 units of current furnished is found not correct. This is the consumption from 10th April, 1976, onwards only. This is evident from the consumption details noted at the time of inspection on 21st April, 1976. Hence the current consumption for the period up to 10th April, 1976, is proposed to be estimated at 300 units based on the actual consumption between 10th April, 1976, to 21st April, 1976. Hence the total current consumption is estimated at 2,530 units. The maximum current consum....

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....d by the learned counsel the consumption of current may vary due to several reasons and it is not possible to make a fool-proof estimate of current consumption for a short period. According to us, therefore, some other method should have been resorted to by the assessing authority in this case taking stock of the facts and circumstances of the case for estimating the turnover of the appellant. On going through the assessment records we find that the appellant has business only for 6 months in the financial year. Considering the facts and circumstances of the case and also the stock discrepancy noticed in the 3rd week of the beginning of the financial year we feel that an addition of 25 per cent to the total quantity of copra admitted to hav....

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....vation of Lord Russell of Killowen in Commissioner of Income-tax v. Laxminarain Badridas [1937] 5 ITR 170 at 180 (PC): "The officer is to make an assessment to the best of his judgment against a person who is in default as regards supplying information. He must not act dishonestly, or vindictively or capriciously because he must exercise judgment in the matter. He must make what he honestly believes to be a fair estimate of the proper figure of assessment, and for this purpose he must, their Lordships think, be able to take into consideration local knowledge and repute in regard to the assessee's circumstances, and his own knowledge of previous returns by and assessments of the assessee, and all other matters which he thinks will assist ....