1972 (6) TMI 58

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..... er as well as the taxable turnover. When that discovery was made, the petitioner filed a revised return disclosing a total turnover of Rs. 1,32,425.92 and a taxable turnover of Rs. 50,627.90. The Commercial Tax Officer, by his order dated 30th September, 1966, made an order of assessment on the best of judgment basis. He rejected the return and computed the total turnover as well as the taxable turnover by the addition of Rs. 45,000 to the total turnover and Rs. 40,000 to the taxable turnover. He found that the returns submitted and the accounts produced were incomplete and unreliable. Then, he proceeded to state as follows: "Considering the nature and volume of business and the method of evasion adopted by the dealer, his total and taxab .....

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..... rational basis and cannot be whimsical or arbitrary. In the original return, the appellant has disclosed the total turnover of Rs. 78,479.25 and the taxable turnover of Rs. 4,655.00. After the detection of the suppressions, he disclosed a total turnover of Rs. 1,32,425.92 and taxable turnover of Rs. 50,627.90. On a comparison of these two figures it is evident that the total turnover suppressed works out to about 66 per cent. and the taxable turnover by more than 11 times the declared taxable turnover (original taxable turnover declared is Rs. 4,655.00 and the revised taxable turnover is at 50,627.90). In view of the fact that the detected turnover is not contained in regularly maintained books of accounts, there is scope to believe that th .....

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..... de. Any such addition cannot rest on the subjective satisfaction of the assessing authority. The material on the basis of which the additions are made should be disclosed to the assessee so that he may have a reasonable opportunity to repudiate the same and the order must state the reasons. In our judgment, the additions made to the gross and taxable turnovers of the dealer are highly arbitrary and cannot be supported. Therefore, we allow this petition and modify the orders of the Tribunal and the authorities below by deleting the additions of Rs. 45,000 and Rs. 40,000 to the gross turnover and the taxable turnover respectively. The result is that the taxable turnover of the assessee should be determined at Rs. 50,627.90. The assessing .....

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