9911796707
TMI Blog1979 (3) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... al facts giving rise to this reference briefly are as follows: The assessee is a dealer carrying on business of manufacturing and selling utensils. For the assessment of tax payable under the Act for the period between 25th October, 1965, and 12th November, 1966, the assessee submitted the return. According to the assessee, his gross turnover was Rs. 9,10,384. The Sales Tax Officer, however, enhanced it to Rs. 9,22,000. He held that as the assessee had failed to maintain stock register and manufacturing account from day-to-day, it was not possible to rely upon the accounts submitted by the assessee. The Sales Tax Officer, therefore, made assessment under the provisions of section 18(4) of the Act. On appeal, the Assistant Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee was such that assessment could not properly be made on that basis. Now, section 18(4) of the Act reads as under: "18. Assessment of tax.......... (4) If a registered dealer (a) has not furnished returns in respect of any period by the prescribed date, or (b) has knowingly furnished incomplete or incorrect returns for any period, or (c) having furnished such returns fails to comply with any of the terms of a notice issued under sub-section (2), or (d) has not maintained any accounts or the accounts maintained by him are not in accordance with the provisions of sub-section (1) of section 26 or has not regularly employed any method of accounting or if the method employed is such that in the opinion of the Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ' and not anyone else's. The High Court could not substitute its 'best judgment' for that of the assessing authority. In the case of 'best judgment' assessments, the courts will have to first see whether the accounts maintained by the assessee were rightly rejected as unreliable. If they come to the conclusion that they were rightly rejected, the next question that arises for consideration is whether the basis adopted in estimating the turnover has a reasonable nexus with the estimate made. If the basis adopted is held to be a relevant basis even though the courts may think that it is not the most appropriate basis, the estimate made by the assessing authority cannot be disturbed." The observation of the Board that after rejection of acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
