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Issues:
The judgment involves the reappraisal of evidence by the Sales Tax Appellate Tribunal, the validity of estimation based on one day sales, and the authority of the Assessing Officer to make estimates. Reappraisal of Evidence by Tribunal: The revision was filed against the Sales Tax Appellate Tribunal's order, questioning the approval of the reappraisal of evidence by the first appellate authority dislodging the reasons given by the assessing officer. The Appellate Assistant Commissioner had deleted the entire estimation but sustained a 20% addition to the book turnover, bringing the assessee below the tax liability. The Tribunal dismissed the Revenue's appeal and confirmed the Appellate Assistant Commissioner's order. Validity of Estimation Based on One Day Sales: The Assessing Officer re-determined the total and taxable turnover based on the estimation from an inspection where one day sales were observed at a hotel. The Tribunal held that estimating the whole year's sales solely based on one day sales was incorrect. They emphasized that using one day average for estimation is not a scientific method and lacks substance. The Tribunal found that the Assessing Officer's estimation was flawed as it did not consider factors like auspicious days, inauspicious days, festival seasons, and natural calamities. Both the first Appellate Authority and the Tribunal concluded that the Assessing Officer's reliance on one day sales for estimation was incorrect. Authority of Assessing Officer to Make Estimates: The Revenue argued that the Assessing Officer had established sales suppression and purchase suppression, justifying the estimation. However, the Court held that the Assessing Officer cannot make estimates based solely on one day sales. They stated that such estimates should consider various factors and cannot be based on a single day's observation. The Court found no error in the Tribunal's decision and dismissed the tax case, stating that no question of law arises for consideration.
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