9911796707
TMI Blog2008 (8) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... he whole year? Held that:- In the instant case, there is a rational basis for the assessing authority to come to the conclusion that there was shortage of the imported raw cashewnuts. This conclusion is based on the shop inspection report made by the Intelligence Officer of the Department, which offence the assessee has compounded departmentally. This shortage should have been properly explained by the assessee. Merely saying that the said imported raw cashewnuts had been processed, roasted and thereafter sold in the market cannot be accepted either by the assessing authority or by any reasonable person unless the same is supported by documentary evidence. Mere assertion will not help the assessee in any manner whatsoever. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose of arriving at the alleged suppression? Has not the appellate Tribunal failed to deal with the specific contention raised by the petitioner in this regard vide paras 4, 5 and 6 of the grounds of appeal? (ii) Is not the addition of two times retained by the Appellate Tribunal excessive and arbitrary in view of the fact that 164 bags of imported raw nuts were taken for quantifying suppression and the period of two inspection covers the whole year? The assessee is a dealer registered under the provisions of the KGST Act. The assessee primarily effects import of raw cashewnuts and after processing the aforesaid commodity effects both intra and inter-State sales. Shop inspections had been conducted by the Intelligence Officers of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her explanation, if any, to the proposal made in the pre-assessment notice. In this revision petition, Dr. K.B. Mohammed Kutty, the learned senior counsel appearing for the assessee, confines this revision case, only to the omission pointed out by the assessing authority in regard to the shortage of imported raw cashewnuts of 164 bags valued at Rs. 6,15,328. According to the learned senior counsel, the shortage so noticed by the Intelligence Officer of the Department and also the assessing authority was in fact, sent for processing and after such processing and roasting, has been sold within the State and, therefore, the Intelligence Officer and the assessing authority were not justified in holding that there was shortage of 164 bags of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se for consideration and decision by this court. In the instant case, a best judgment assessment order is passed by the assessing authority purely based on the shop inspection report conducted by the Intelligence Officer of the Department, not once, but twice. The assessing authority by making use of the mahazars drawn by the Intelligence Officer of the Department at the time of the shop inspections had issued a pre-assessment notice to the assessee, inter alia, proposing to make certain additions towards the probable suppressions and omissions said to have been made by the assessee during the course of her business for the assessment year 1999-2000. One of the omissions that was pointed out by the assessing authority in the pre-assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submit that the addition made by the assessing authority is excessive and therefore, interference by this court is called for. None of the contentions canvassed by the learned senior counsel appearing for the assessee would impress us. It is a best judgment assessment. For passing a best judgment assessment there must be a rational basis and such rational basis must be found in the order itself. If such a basis is not available then the best judgment assessment passed by the assessing authority cannot be sustained by this court. In the instant case, as we have already stated, there is a rational basis for the assessing authority to come to the conclusion that there was shortage of the imported raw cashewnuts. This conclusion is based ..... X X X X Extracts X X X X X X X X Extracts X X X X
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