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TMI Blog1973 (1) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... additions made to the taxable turnover returned by him in respect of both the years and went in appeal before the Appellate Assistant Commissioner. Having failed in the appeals, he approached the Tribunal by filing the further appeals. The Tribunal also sustained the additions made by the assessing authority to the taxable turnover returned by the assessee in respect of the years in question. In these revisions, the orders of the Tribunal in respect of both the assessment years are challenged by the assessee. On behalf of the assessee, it is contended that the additions came to be made by the assessing authority are quite arbitrary and there was no justification for making the additions in both the years. According to the learned counsel, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e much lower than the normal rate. The efficiency of the crushing machines and also the moisture content in the copra would also be relevant factors to be taken into account in arriving at the output. It is, therefore, unsafe to uphold the rejection of the accounts purely on the ground that there has been divergence in the consumption of electricity." In Mahabir Prasad Jagdish Prasad v. Commissioner of Sales Tax[1971] 27 S.T.C. 337. also, a similar question was considered. There also, the assessing authority did not find any material to show that the account books maintained by the assessee were not reliable. But the account books were rejected only on the ground that the consumption of electricity showed that the assessee would have supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in respect of decorticating and grinding, the assessing authority cannot at once proceed to make a "best judgment" assessment ignoring the account books produced. If the assessing authority had material to doubt the correctness or genuineness of the entries in the account books, he can proceed to make the "best judgment" assessment, taking the electricity consumption as the basis for making an estimate. But in this case the assessing authority has not proceeded to reject the account books on any ground whatever. We are, therefore, of the view that so far as the assessment year 1963-64 is concerned, the assessing officer had no sufficient material to reject the accounts and proceed to make the assessment on a "best judgment" basis, having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale bill in relation to one tin of oil. Another defect pointed out is that there was an excess stock of oil of 169 tins worth about Rs. 6,000, when the business premises of the assessee was inspected on 22nd October, 1964. On account of this unaccounted stock a penalty of Rs. 360 was also levied on the assessee. The above defects are found by the Tribunal to be sufficient for making a 'best judgment" assessment. We are also of the same view. Once a "best judgment" is called for, the question is whether the assessing authority is justified in proceeding to make an assessment on the basis of the electricity consumption. It cannot be disputed that the consumption of electricity is one of the methods to find out the work done in the oil mill. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... officer has not indicated any other alternate method of making the estimate of suppressions. Having regard to the fact that the matter required a remand to the Tribunal resulting in some further delay, we suggested an addition to an extent of Rs. 50,000 to the taxable turnover returned by the assessee towards the sale value of the oil. In suggesting the said sum of Rs. 50,000, we had taken into account the concrete instance of excess stock of 169 tins worth about Rs. 6,000 on one particular day in the course of the assessment year. When this figure was suggested to the learned counsel for the assessee he also felt that, in the circumstances, that will be a fair estimate. We, therefore, reduce the addition made by the assessing authority in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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