1996 (2) TMI 511

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..... ght in holding in law that best judgment assessment under section 18(4) of the M.P. General Sales Tax Act, does not necessarily mean enhancement in turnover, in view of the provisions of rule 33(3) made thereunder?" 2.. Facts lie in a narrow compass: The non-applicant deals in clothes, bhangar and utensils, etc. For the period from November 16, 1982 to November 4, 1983, the assessment order was passed by the Sales Tax Officer, Betul. The details of the entries in the return filed by the non-applicant were found incorrect, tax calculation chart was also found incorrect. While the total turnover was shown in the return at Rs. 12,77,858.85, the books of accounts showed total turnover at Rs. 12,43,694.69. The difference in the return and .....

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..... ncement in turnover in view of the provisions of rule 33(3) made under the aforesaid Act. 5.. Rule 33(3) reads as under: "In making an assessment to the best of his judgment under sub-section (4), (6) or (7) of section 18, the assessing authority shall, as far as practicable, have due regard to the extent of the business carried on by the dealer, the surrounding circumstances and all other matters which may be of assistance in arriving at a fair and proper estimate of the taxable turnover of the dealer." 6.. Section 18(4) of the Act reads as under: "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 peri .....

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..... . The object and purpose of best judgment assessment is to arrive at a fair and proper estimate of the turnover of the dealer. The best judgment assessment does not necessarily mean enhancement in turnover. When the books of accounts were not found rejectable, those books could form the basis of best judgment assessment. It is thus, not necessary that this exercise must result in enhancement in turnover. 10.. In view of the aforesaid position, we are satisfied that the Tribunal was right in holding that best judgment assessment under section 18(4) of the Act does not necessarily mean enhancement in turnover in view of the provisions contained in rule 33(3) as quoted above. The aforesaid rule itself manifests that the estimate of taxable t .....

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