1987 (11) TMI 353

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Sales Tax Officer concerned and reducing the enhanced determined gross turnover returned resulting in reduction in the extra tax demand against the assessee?" 2.. The facts of the case, briefly stated, are as follows: For the assessment year 1976-77, the dealer returned a gross turnover of Rs. 3,10,398.25 who carried on business in motor parts. The Sales Tax Officer did not accept it, inter alia, on the ground that serial No. 747 was removed from the cash memo book and no purchase voucher was produced at the check gate on 27th July, 1976. He also noticed certain suppressions of sale of different items. He accordingly proceeded to assess under section 12(4) of the Act and made a best judgment assessment by enhancing the gross turnover....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f law in enhancing the gross turnover by Rs. 6,138 only with reference to one quarter only and that the entire year should have been taken into consideration. In Esufali's case [1973] 32 STC 77 (SC), the question was whether best judgment assessment could be made on the basis of suppression of sale for 19 days and whether that could form the basis for estimating the escaped turnover for the whole year. There, the Sales Tax Officer had reassessed the assessee under the provisions of the Madhya Pradesh General Sales Tax Act on the basis of "best judgment" by estimating his turnover on the basis that dealer had dealings outside his accounts of a particular value during the period of 19 days. No doubt, the Sales Tax Officer in that case estimat....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... with respect to only a part of the assessment year, then the court will direct him to make an estimate for the whole year, as in that case it would amount to giving a direction as to how to work out his own discretion in a best judgment assessment. After all, it is only a matter of applying his own judgment to the best of his discretion "which may be an over-estimate or an under-estimate". It cannot be said to be either arbitrary or devoid of any nexus. The jurisdiction being of an appellate authority and of the High Court, under a reference quite different, the High Court will not interfere in such circumstances. The Tribunal found it reasonable to enhance the gross turnover only by a particular sum which appeared best in its judgment. Th....