9911796707
TMI Blog1993 (1) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... State Act"). The Sales Tax Officer did not accept the version of the assessee and rejected the returns filed under both the Acts for the reasons amongst others that the assessee had failed to produce the cash book, cash memos and manufacturing registers, etc. Upon rejection of the returns, the Sales Tax Officer proceeded to determine the turnover on best judgment. He drew up a common order purporting to be both, for the turnovers liable under the State Act as well as Central Act and estimated a consolidated taxable turnover at rupees one lakh out of which rupees sixty thousand was bifurcated as liable under the State Act and the balance turnover of rupees forty thousand under the Central Act in addition to the turnover of Rs. 4,452.50 that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the alternative it was argued that there was no justification to sustain the fixation of turnover of rupees forty thousand. Having heard learned counsel for the parties, in my opinion, the order of the Tribunal cannot be sustained as the matter requires fresh consideration. As observed earlier, so far as the assessment under the State Act is concerned, the matter stands remanded to the assessing officer against which none of the parties filed appeal to the Tribunal. There is nothing on the record to indicate that after the remand any fresh assessment had been made. It is evident from the appellate order that the remand was made for the purpose of ascertaining whether the assessee had made any purchases and undertaken manufacturing activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be said to be unreasonable and excessive." The approach of the Tribunal, in my opinion, was wholly erroneous. In all fairness the Tribunal should have awaited the result of the remand before rejecting the version of the assessee, namely, that in the relevant year no business was carried on or transacted. The order passed by the Tribunal was not one of affirmance. In such a situation before upsetting the order of the appellate authority it was incumbent upon the Tribunal to advert to the findings of the appellate authority that the assessment order furnish no material for any addition that the assessee had made inter-State sales. This finding of the appellate authority has not been upset by the Tribunal. In absence of relevant finding on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... picion. To use the words of Lord Russel of Killowen again, 'he must make what he honestly believes to be a fair estimate of the proper figure as assessment' and for this purpose he must take into consideration such materials as the assessing officer has before him, including the assessee's circumstances, knowledge of previous returns and all other matters which the assessing officer thinks will assist him in arriving at a fair and proper estimate." It is evident that rejection of account books does not confer jurisdiction to make punitive assessment and to decide the matter without wisdom, truly and legally. Even in a case of best judgment an honest attempt must be made to adopt the turnover which approximates more near to the truth. It m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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