2016 (8) TMI 3

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....el sheets and was duly exempted under section 4-A of the U.P. Trade Tax Act 1948. The assessing authority pursuant to a survey of the premises of the revisionist found as many as eight documents which did not appear to have been accounted for in the books. During the course of assessment, assessing authority proceeded to accept the explanation of the revisionist in respect of the material so gathered except in relation to Exhibit-4. As is described in the order of assessment, Exhibit-4 is stated to evidence a sale of 72 tons during the period 1 June 2001 to 19 July 2001. This sale valued at Rs. 4,58,327/- was found by the assessing authority to have not been accounted for. The assessing authority accordingly preceded to take the basis of th....

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....he Tribunal found that the order of the assessing authority and its estimation of escaped purchases and sales was unsustainable. Having arrived at this conclusion, the Tribunal however, proceeded to reduce the escaped turnover of purchases and sales to Rs. 12,50,000/- and Rs. 11,50,000/- The order of the Tribunal is totally silent on the basis of which this was arrived at. The principles applicable to an assessment taken to the best of judgment are no longer res integra. One may in this connection only note what the Supreme Court held in State of Kerala v. C. Velukutty (1966) 60 ITR 239, 9. What is the scope of Section 12(2)(b) of the Act? The expression "to the best of his judgment" in the said clause is presumably borrowed from S....

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....he assessment made by the Sales Tax authorities, as in making the best judgment assessment the said authorities considered all the available materials and applied their mind and tried their best to come to a correct conclusion. So too, a Division Bench of the Patna High Court in Doma Sahu Kishun Lal Sao v. State of Bihar [1951 2 STC 37] refused to interfere with the best judgment assessment of a Sales Tax Officer as he took every relevant material into consideration, namely, the situation of the shop, the rush of the customers and the stock in the shop and also the estimate made by the Assistant Commissioners in the previous quarters. 10. Under Section 12(2)(b) of the Act, power is conferred on the assessing authority in the circum....