What is the difference between Assessment based on Best Judgement and Assessment based on books of accounts? Whether high court has power to substitute best judgement made by assessing authority?
2 April, 2015
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Best judgment assessment: courts may not substitute their own estimate if the assessing authority's basis has reasonable nexus. Assessment based on accounts is proper where books are genuine and substantially correct, with only minor adjustments; a best judgment assessment is used ... Summary
Best judgment assessment: courts may not substitute their own estimate if the assessing authority's basis has reasonable nexus.
Assessment based on accounts is proper where books are genuine and substantially correct, with only minor adjustments; a best judgment assessment is used when accounts are unreliable and the authority estimates liability using available accounts, other information and surrounding circumstances. Courts reviewing a best judgment assessment must first confirm that rejection of accounts was justified and then assess whether the estimating basis has a reasonable nexus to the estimated turnover; if so, the authority's bona fide estimate should not be displaced.
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