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TMI Blog1980 (11) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... red. After issuing notice and calling for explanations on the discrepancies found in the accounts as also on the turnover covered by the slips, the assessing officer rejected the accounts and proceeded to estimate the turnover. The slips recovered during inspection covered a period of 15 days and the sales suppressed as disclosed in the slips worked out to Rs. 9,087. On the basis that the slips showed that the assessee should have resorted to suppression continuously during the earlier periods as well and adopting the sales suppression for a fortnight at Rs. 9,087, estimated the omission at Rs. 1,54,479, which is 16 times of Rs. 9,087 plus Rs. 9,087. This multiple of 16 times was taken by the assessing officer on the ground that prior to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nue took suo motu proceedings under section 34 of the Tamil Nadu General Sales Tax Act and after issuing notice to the assessee, set aside the order of the Appellate Assistant Commissioner and restored that of the assessing officer considering the suppression noticed during a fortnight as justifying the conclusion that the dealer should have indulged in similar suppressions during the earlier fortnights of the assessment year. The Board of Revenue also restored the penalty levied by the assessing officer. It is against this order of the Board of Revenue that the present appeal has been filed under section 37 of the Act. The learned counsel for the assessee contended that there are no grounds to hold that the suppression could have pervade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... timately the assessing officer estimated the assessee's escaped turnover at Rs. 2,50,000 adopting the sale of Rs. 31,171.28 as the escaped turnover for a period of 19 days as the basis. Dealing with the legality of this estimation of the suppressed turnover, the Supreme Court held: "So long as the estimate made by him (the assessing officer) is not arbitrary and has nexus with facts discovered, the same cannot be questioned. In the very nature of things the estimate made may be an over-estimate or an underestimate. But that is no ground for interfering with his 'best judgment'." The Supreme Court found the nexus in such an estimate from the fact of recovery of the bill book which showed suppression of a turnover to the extent of Rs. 31, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the period of inspection in the assessment year. We do not find any justification for holding that this was not reasonable or just. In fact, even if the assessing officer had adopted a different multiple, unless it is found to be so arbitrary and unreasonable we would not have interfered. As pointed out by the Supreme Court it was not necessary for the assessing officer in such circumstances to be in possession of any correct measure to find out the escaped turnover. The Appellate Assistant Commissioner, therefore, had no material on which he should have held that the assessing officer's estimation of the suppressed turnover was in any way arbitrary or illegal. In fact, the reasoning of the Appellate Assistant Commissioner that there was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ressed turnover for the earlier six months from the beginning of the assessment year and from the mere fact that the suppression was found on 27th September, 1968, it could not be presumed that even in the future period there should have been suppression. In fact the High Court pointed out that the Tribunal had observed in its order that "if there had been another inspection in the course of the year after 27th September, 1968, perhaps variation of this kind would have been noticed". The High Court characterised this argument of the Tribunal as mere guess-work and cannot form any basis or material for holding that even subsequent to 27th September, 1968, there might have been some suppression of the turnover. We may put it more legally on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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