1996 (2) TMI 511

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....Act, for our opinion: "Whether, under the facts and circumstances of the case, the Board of Revenue was right in holding in law that best judgment assessment under section 18(4) of the M.P. General Sales Tax Act, does not necessarily mean enhancement in turnover, in view of the provisions of rule 33(3) made thereunder?" 2.. Facts lie in a narrow compass:   The non-applicant deals in clothes, bhangar and utensils, etc. For the period from November 16, 1982 to November 4, 1983, the assessment order was passed by the Sales Tax Officer, Betul. The details of the entries in the return filed by the non-applicant were found incorrect, tax calculation chart was also found incorrect. While the total turnover was shown in the return at ....

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.... 4.. Shri Mathur, submitted that best judgment assessment under section 18(4) of the Act should necessarily mean enhancement in turnover in view of the provisions of rule 33(3) made under the aforesaid Act. 5.. Rule 33(3) reads as under:   "In making an assessment to the best of his judgment under sub-section (4), (6) or (7) of section 18, the assessing authority shall, as far as practicable, have due regard to the extent of the business carried on by the dealer, the surrounding circumstances and all other matters which may be of assistance in arriving at a fair and proper estimate of the taxable turnover of the dealer." 6.. Section 18(4) of the Act reads as under:   "If a registered dealer  (a) has not furnis....

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....udgment assessment resulting in enhancement in the turnover is not justified as decided in the case of Nagri Chemical and Wire Product, Bhilai." 9.. The object and purpose of best judgment assessment is to arrive at a fair and proper estimate of the turnover of the dealer. The best judgment assessment does not necessarily mean enhancement in turnover. When the books of accounts were not found rejectable, those books could form the basis of best judgment assessment. It is thus, not necessary that this exercise must result in enhancement in turnover. 10.. In view of the aforesaid position, we are satisfied that the Tribunal was right in holding that best judgment assessment under section 18(4) of the Act does not necessarily mean enhanc....