2015 (1) TMI 1271 - HC - VAT and Sales Tax

Validity of assessment made on best judgment basis - No records submitted by assessee - Manufacturer of bricks - Held that - it is the owner of the brick kiln who was in possession of all the books of accounts. The assessee cannot urge that because he has not produced the books of account the assessing officer should not make assessment on best judgment basis. From the record, it is apparent that the assessee had not even filed returns for various periods, but when the taxation inspectors visited the spot they found huge amounts of coal and firewood lying which obviously had to be used for the purpose of production of the bricks. Therefore, the assessing officer has passed a reasoned order.As in appeal, none had appeared before the appellate authority, thereafter, even in the writ petition, none appeared and now the appellant cannot be heard to argue that there is no record available with the Department and therefore, no assessment could have been made. - Decided against the petitioner

Summary

Issues:
1. Dismissal of writ petition on merits in absence of counsel.
2. Assessment made on best judgment basis due to non-production of records.
3. Validity of assessment made without production of records.
4. Appellant's argument against assessment without records.
5. Assessment based on documents produced by Inspector of Taxes.
6. Owner's responsibility for maintaining books of accounts.

Analysis:
The judgment pertains to a writ appeal challenging the dismissal of a writ petition due to the absence of the petitioner's counsel. The appellant, a brick manufacturer, was issued a notice for production of books of accounts for assessment years 1989-90 to 1993-94. Despite producing some records, no documents were presented for the years 1990-91 and 1993-94. The assessing officer proceeded with the assessment on a best judgment basis. The senior counsel for the appellant argued that an assessment made without any record is invalid.

The court observed that the assessing officer relied on documents like production registers and loading registers to make the assessment for all years. The judgment states that the assessment was not baseless as the assessing officer provided reasons for the assessment. It was emphasized that the owner of the brick kiln, who possessed the books of accounts, cannot claim that the assessment without the production of records is unjustified. The court noted the presence of coal and firewood at the site during inspections, indicating production activity.

The appellate authority did not have any representation during the appeal process. The court concluded that the appellant cannot now argue against the assessment due to the absence of records, especially when no one appeared during the appeal or the writ petition. Consequently, the court found no merit in the appeal and dismissed it. The judgment underscores the importance of maintaining proper records for assessments and the consequences of failing to do so.