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Issues:
1. Correctness of order passed by Karnataka Appellate Tribunal in a tax matter under the Karnataka Agricultural Income Tax Act, 1957. Analysis: 1. The respondent, a coffee planter, filed annual returns, and the Assessing Authority computed tax liability using best judgment estimation without rejecting the books of accounts produced by the assessee. 2. The first Appellate Authority also computed tax liability without rejecting the returns or books of accounts. The matter was then appealed to the Karnataka Appellate Tribunal. 3. The Tribunal observed that without rejecting the books of accounts, the authorities could not have used best judgment estimation. The Tribunal set aside the previous orders, leading to the revenue's revision petition before the High Court. 4. The revenue argued that best judgment estimation implies rejection of books of accounts, but the Court disagreed. It stated that best judgment assessment must be fair and proper, not arbitrary, and enhancement is not essential. If regular books are maintained and not rejected, unjustified enhancement in turnover is not permissible. 5. The Tribunal correctly found that the assessee maintained regular books of accounts, which were not rejected by the Assessing Officer. Therefore, the Tribunal's decision to set aside the Assessing Authority's order and direct computation based on the filed returns was justified. 6. The Court upheld the Tribunal's decision, emphasizing that the Tribunal did not err in allowing the appeal and directing the computation of tax liability based on the filed returns. The Court rejected the revenue's revision petition, affirming the Tribunal's order. 7. The High Court concluded that the Tribunal's decision was appropriate, given the circumstances, and no interference was warranted. The revenue's revision was dismissed, and the Tribunal's order was upheld.
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