TaxTMI 
TaxTMI 
2022 (2) TMI 613
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....ales Tax Appellate Tribunal dated 12.09.2003 passed in S.T.A.No.1070 of 2000, insofar as it restored the order of assessment dated 20.10.1997, while setting aside the order of the First Appellate Authority dated 22.04.1999. 2.The brief facts of the case would run thus: The petitioner is engaged in the business of manufacture/production of Jelly. For the assessment year 1996-97, the petitioner had reported a total and taxable turnover of Rs. 2,28,300/- in their monthly return in Form A1. During the course of assessment, the accounts of the petitioner were called for and were scrutinised, pursuant to which, it was found that the books of accounts suffers from the following defects: (i)No production-cum-stock account in form XXX....
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....the case study during the survey conducted on 14.05.1996 was not justified as the said survey was at the beginning of the year and therefore could not have been applied for the entire year. However, the appellate authority, after having noticed that the assessing officer had found certain defects on verification of accounts, proceeded to add 25% to the turnover disclosed in the books of accounts and thereby, redetermined the turnover at Rs. 2,85,375/-. Despite the said addition, the First Appellate Authority levied no tax and deleted the penalty, since the turnover re-fixed was below the threshold limit of Rs. 3 lakhs and accordingly, allowed the appeal filed by the assessee, thereby setting aside the order of assessment. 4.Challenging t....
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....s suffer from defects warranting best judgment assessment. The Tribunal has however restored the best judgment assessment made on the basis of the electricity consumption and its bearing on the input-output norms, besides rendering a finding that the books of accounts of the petitioner was not reliable for the various defects as referred to above. 7.There appears to be divergents views insofar as the question as to whether the consumption of electricity can constitute the sole basis for making a best judgment assessment. However, we find that in the present case, the best judgment assessment was not only necessitated by the survey report/case study on electricity consumption vis-a-vis production of jelly, but also the fact that the books....
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....ere is no good proof in support of that estimate is immaterial. Prima facie, the assessing authority is the best judge of the situation. It is his "best-judgment" and not of any one else's. The High Court could not substitute its "best-judgment" for that of the assessing authority. ....If the basis adopted is held to be a relevant basis even though the courts may think that it is not the most appropriate basis, the estimate made by the assessing authority cannot be disturbed." The above observation of the Hon'ble Supreme Court would make it clear that best judgment assessment necessarily involves an element of guesswork and is a matter of discretion to be exercised by the Assessing Officer and exercise of such power ough....