TaxTMI 
TaxTMI 
1995 (7) TMI 409
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....s appeal filed by the Commissioner of Sales Tax was dismissed. The Commissioner of Sales Tax, U.P., Lucknow, has also filed a cross S.T.R. No. 728 of 1989 for enhancement of the taxable turnover fixed by the Sales Tax Tribunal, Bench II, Meerut, while partially allowing the second appeal No. 712 of 1988. I have heard the learned counsel for the applicant Mr. Bharatji Agrawal and the learned Standing Counsel for the opposite party Mr. R.D. Gupta assisted by Sri. M.N. Rai departmental representative The sole point raised in this revision by Mr. Bharatji Agrawal is that the learned Tribunal has committed an arbitrariness like the assessing authority and the first appellate authority by fixing the taxable turnover at Rs. 6,50,000 for the ass....
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....gone to more than the double of the figure of the taxable turnover finally accepted for the year 1985-86. Therefore, what worries this Court is that element of arbitrariness had afflicted the impugned judgment of the Tribunal also. It appears that the learned Tribunal was probably helpless to find out any relevant material or any basis for calculation of the sales of the appellant-revisionist. Therefore in the state of helplessness, the Tribunal finding no alternative reduced the taxable turnover from Rs. 14 lacks to Rs. 50,000. The first appellate authority had reduced it to Rs. 26,250 from Rs. 14 lacks. The survey report dated January 19, 1987 indicated the sales for three hours of a day at Rs. 1,384. The assessing authority calculated t....
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....e in particular cases indicated the relevant considerations for fixing the taxable turnovers when the account books of the assessee are wrongly or rightly rejected and the assessment is made on the best judgment basis. The assessment has to be made on the basis of cogent material and rational considerations. The element of guess work has to be avoided. The realities of business practices and market conditions must be taken into consideration in respect of the commodities with which the assessee is dealing. The approach of the taxing authority should be reasonable one so far as the determination of tax liability of the assessee is to be made. There should not be any indication in the best judgment assessment that the approach of the taxing a....
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....ill again cripple. Therefore, what can serve the purpose practically and can be available handy is price rise, in addition to other relevant factors. The Tribunal or the assessing authorities can also take this relevant factor into consideration while enhancing the turnover of the assessee in comparison to the assessment for the previous year. In the present case, the assessee was finally assessed at the taxable turnover of Rs. 3,10,800 for the assessment year 1983-84, and at Rs. 3,50,000 for the assessment year 1984-85 and at Rs. 3,00,000 for the assessment year 1985-986. The assessment made by the Tribunal fixing the taxable turnover at Rs. 6,50,000 does not come nearby the figure of the last assessment. No reason has been mentioned as t....