9911796707
TMI Blog2016 (8) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... is revision is directed against an order of the Tribunal dated 23 February 2005 which has proceeded to modify an order of assessment made against the revisionist in the course of proceedings taken and relating to the assessment year 2001-02. The case of the revisionist was that it was engaged in the manufacture and sale of iron steel sheets and was duly exempted under section 4-A of the U.P. Trade Tax Act 1948. The assessing authority pursuant to a survey of the premises of the revisionist found as many as eight documents which did not appear to have been accounted for in the books. During the course of assessment, assessing authority proceeded to accept the explanation of the revisionist in respect of the material so gathered except in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority was unjustified in enhancing the turnover of purchases and sale for a period of four months. It further took note of the fact that the assessing authority had not found any material which may have tended to indicate an intention to evade tax in any period after the date when the survey was undertaken namely on 27 July 2001. On this score also, the Tribunal found that the order of the assessing authority and its estimation of escaped purchases and sales was unsustainable. Having arrived at this conclusion, the Tribunal however, proceeded to reduce the escaped turnover of purchases and sales to ₹ 12,50,000/- and ₹ 11,50,000/- The order of the Tribunal is totally silent on the basis of which this was arrived at. The princi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udgment after taking into consideration the relevant material. The view expressed by the Privy Council in the context of the Income Tax Act was followed when a similar question arose under the Sales Tax Act. A Division Bench of the Calcutta High Court in Jagadish Prosal Pannalal v. Member, Board of Revenue, West Bengal [1951 2 STC 27] confirmed the assessment made by the Sales Tax authorities, as in making the best judgment assessment the said authorities considered all the available materials and applied their mind and tried their best to come to a correct conclusion. So too, a Division Bench of the Patna High Court in Doma Sahu Kishun Lal Sao v. State of Bihar [1951 2 STC 37] refused to interfere with the best judgment assessment of a Sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere fact that the material placed by the assessee before the assessing authorities is unreliable does not empower those authorities to make an arbitrary order. The power to levy assessment on the basis of best judgment is not an arbitrary power; it is an assessment on the basis of best judgment. In other words that assessment must be based on some relevant material. It is not a power that can be exercised under the sweet-will and pleasure of the concerned authorities. The scope of that power has been explained over and over again by this Court. In the light of the law so laid down, it is clear that the order of the Tribunal is rendered unsustainable. Accordingly, this revision shall stand allowed. The order of the Tribunal is hereby ..... X X X X Extracts X X X X X X X X Extracts X X X X
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