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TMI Blog1960 (10) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... he return were not properly kept and did not sufficiently disclose the sales made. The Sales Tax Officer did not, therefore, accept the return and proceeded to assees according to his "best judgment" as provided in section 11(4) of the Sales Tax Act. He held that the sales during the assessment period amounted to Rs. 4,50,000 and ordered the dealer to pay tax amounting to Rs. 11,371-14-0 only (Ex. P-1). The petitioner went up in appeal and the Assistant Commissioner of Sales Tax reduced the turnover to rupees four lacs (Ex. P-2). The Commissioner of Sales Tax refused to interfere with the order (Ex. P-3). 3.. The Sales Tax Officer had obtained a report from the Sales Tax Inspector and learnt from it that the petitioner had held "many more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exed and it is not stated which of the contracts were taken into consideration in assessing the turnover. 6.. Section 11(4) of the Sales Tax Act is as follows: "(4) If a registered dealer- (a) does not furnish returns in respect of any period by the prescribed date, or (b) having furnished such returns fails to comply with any of the terms of a notice issued under sub-section (2), or (c) has not regularly employed any method of accounting, or if the method employed is such that, in the opinion of the Commissioner, assessment cannot properly be made on the basis thereof, the Commissioner shall in the prescribed manner assess the dealer to the best of his judgment: Provided that he shall not so assess him in respect of the def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st him in arriving at a fair and proper estimate; and though there must necessarily be guess-work in the matter, it must be honest guesswork. In that sense, too, the assessment must be to some extent arbitrary." We agree with the learned Government Advocate, that in making the best judgment assessment, it is open to the Sales Tax Officer or the Income-tax Officer to rely on private sources of information and inquiries made. However, in Dhakeswari Cotton Mills Ltd. v. Commissioner of Income-tax, West Bengal[1954] 26 I.T.R. 775; A.I.R. 1955 S.C. 65., the power of the Income-tax Officer to make assessment under section 23(3) of the Income-tax Act was considered. This is what their Lordships observed: "In this case we are of the opinion tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and he denied that he had worked the several contracts. It is difficult to say whether he was questioned about the details of the several forest contracts. In paragraph 5 of the return it has been stated by the respondents that it was not necessary to question the petitioner regarding the forest contracts. As we have said, it is clear from the petition that the dates on which three of the forest contracts were taken were beyond the assessment period and the date of taking one of them was very near the end of that period. Thus only two of the contracts were worked by the petitioner. It was necessary for the Sales Tax Authorities to disclose to the petitioner the contracts which he was supposed to have worked and to question him about them. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... volume of business was arrived at after considering all the eight contracts. The return and the orders Ex. P-1, Ex. P-2 and Ex. P-3 do not disclose that there was any justification for this assumption. 10.. Accordingly, the assessment proceedings were held contrary to the fundamental principles laid down in Dhakeswari Cotton Mills' case[1954] 26 I.T.R. 775; A.I.R. 1955 S.C. 65. and the assessment is, therefore, liable to be set aside. We order that a writ of certiorari shall issue quashing the assessment made by the Sales Tax Authorities in this case. It shall be open to them to proceed again to assess the petitioner in accordance with law. Under the circumstances of this case, we make no order as to costs. The outstanding amount of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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