TaxTMI 
TaxTMI 
2020 (12) TMI 280
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.... assessment proceedings arise from the Assessment Year 2013-14 wherein the revisionist has disclosed the turn over of purchases and sales as under: (1) Total purchases from the registered dealers: 16,65,367.00 (2) Sales within U.P. (a) Taxable Rs. 65,400.00 (b) Non-taxable Rs. 20,000.00 Total sales within U.P. 85,400.00 (3) Central Sales Rs. 25,29,563.00 Gross Turn over of sales: Rs. 26,14,963-00 It is stated that the revisionist has also filed his detailed Statements of Accounts. It is stated that while the assessment proceedings were going on two tax invoices collected by Mobile Squad were considered by the Assessing Authority and with regard to one of the said two tax invoices, ....
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....ary and illegal inasmuch as only one bill recovered or produced by the Mobile Squad was found to be non-genuine and it was argued before the Appellate Authority that the assessment taking into account the entire sales, the State as well as the Central was an arbitrary exercise of power. The Appellate Authority, vide order dated 18.2.2018, was of the opinion that the determination of the turn over on the basis of 'best judgement assessment' was based upon maintenance of parallel bill book hence the evaded sales was assessed as equal to the disclosed sales of the assessee i.e. 26,15,000/-. As regards, the Central Sales, the Appellate Authority was of the opinion that as no evidence was on record with regard to evasion of Central Sa....
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.... Hon'ble Court, it was legally justified to impose the tax both on determined taxable turnover of purchase and sales without giving the benefit of input tax credit to the applicant?" The counsel for the revisionist argued that while taking recourse to the powers conferred upon the authority under section 28(2)(ii) of the Act, the Assessing Authority does not get absolute powers for making the assessment. The said power has to be exercised with caution and any exercise of power which is prima facie arbitrary has to be held contrary to the powers conferred under section 28(2)(ii) of the Act. The counsel for the revisionist has placed reliance upon the judgement of this Court in the case of Ayyub Traders vs. Commissioner, Commercial ....
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....to have a genuine grievance and not to set a rule as to the estimation to be made, the estimation of undisclosed turnover be pegged at Rs. 50,000/-. The assessment may stand concluded accordingly. Question of law no. (ii) is answered accordingly." He further placed reliance upon the judgement of this Court dated 04.12.2017 in Sales/Trade Tax Revision No. 317 of 2007 (M/s Vivek Agency Thru' Prop. Gyan Prakash Kesarwani vs. The Commissioner of Trade Tax, U.P. Lucknow) wherein this Court has recorded as under: "Both the Assessing Authority as well as the Tribunal have proceeded in the matter without being educated by the principles which must necessarily govern a best judgment assessment. While it is true that in the c....
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.... 22.7.2015 does not appear to have been taken note of in correct perspective and without any independent material or finding, it has reiterated the view taken earlier by it. There is no finding that assessee had persistently committed such default or that it was done with deliberate intent. In the facts and circumstances of the present case, enhancement ought not to have been made more than twice the escaped transaction. The question of law raised in this revision is accordingly answered by holding that tribunal was not justified in enhancing the turnover above twice the escaped transaction in the facts and circumstances of the present case, and the enhancement to the tune of 28 times is not justified." In view of the judgements....
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....t assessment' is well settled. The Supreme Court in the case of State of Kerala vs. C. Velukutty, (1966) 60 ITR 239, The Commissioner of Income Tax, Calcutta vs. Padamchand Ramgopal, 1970 (3) SCC 866, M/s Joharmal Murlidhar and Co. vs. Agricultural Income Tax Officer, Assam and others, 1970 (3) SCC 331 and Shri S.M. Hasan, S.T.O. Jhansi and another vs. M/s New Gramophone House, Jhansi, (1976) 4 SCC 854 has categorically held that while assessing, on the basis of 'best judgement', the Assessing Authority has to make the assessment honestly and on the basis of an intelligent well-grounded estimate rather than upon pure surmises. The assessment so made while taking recourse to the 'best judgement assessment' should not be s....