1986 (12) TMI 361

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..... service of notice, the dealer has not preferred to appear in this Court and the learned Standing Counsel, Commercial Tax Department was heard in the matter. 3.. The facts giving rise to this reference are to the effect that the dealer not having furnished the returns on due date, assessment was completed under section 12(4) of the Act to the best of judgment of the assessing officer. For the purpose of completing the assessment to the best of judgment, the assessing officer relied upon suppression of purchases and sales. One of the suppressions is based on a report of the Commercial Tax Officer, Intelligence Wing, Sambalpur, where it was stated that while verifying the books of accounts of M/s. Nandalal Narayan Prasad of Jharsuguda, he se .....

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..... 12 of the Act deal with the assessment to the best of judgment. Sub-section (3) thereof provides that in case all the terms of the notice for assessment under sub-section (2) are not complied with, the assessment can be completed to the best of judgment. Thus, sub-section (3) provides for examination of accounts and rejection thereof for the purpose of completing the assessment to the best of judgment. Sub-section (4), however, contains the legislative mandate for best judgment assessment. The dealer is only to produce evidence in support of the return. In this case, the dealer produced his books of accounts in support of the return which have been rejected on the basis of the report of the Commercial Tax Officer, Intelligence Wing, to the .....

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..... uch allegation in this case. Accordingly, the estimate based on the reputation of the dealer in the locality, the length of the period of his business to enhance the return turnover by 5 per cent only cannot be said to be without any nexus when that aspect of the matter is also not challenged. Reputation and the length of period of business would be sufficient nexus in the peculiar circumstances of this case, although, the assessing officer would have done well in taking into account the turnovers of the previous years, for the purpose of estimation. 6.. In the result, the answer is to be given in favour of the department to the effect that in the facts and circumstances of the case, the Tribunal was not correct in reducing the assessment .....

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