9911796707
TMI Blog2016 (8) TMI 1115X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel for the revisionist and the learned Standing Counsel. The revision assails the validity of an order passed by the Tribunal on 21 July 2005 which has proceeded to affirm in part the view taken by the assessing authority which had proceeded to reject the books of account maintained by the assessee and undertake a best judgment assessment. Admittedly the revisionist had failed to maintain a m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of account maintained consequent to finding that the manufacturing account register has not been maintained, the best judgment assessment should have necessarily have been based upon some material or evidence which was found or relied upon. It is his submission that neither the assessing authority nor for that matter the first appellate authority nor the Tribunal have based their estimation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erfered with by this Court. True, it is that a best judgment assessment can be undertaken in case the assessee fails to maintain a manufacturing account register as mandatorily required under Section 12. This was so held by a Division Bench of the Court in M/S. Agarwal Plastic Industries, Modi Nagar, Ghaziabad v. Commissioner of Sales Tax [1989 U.P.T.C. 1281. But at the same time, and what t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered as reasonable." As noted above, the assessing authority did not lay its hand or rest his estimation on any material that may have been found in the possession of the assessee. While it was open to him to undertake an assessment to the best of his judgment consequent to the rejection of account, the same could not have been based on surmises and conjectures. It is settled law that while a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pricious and whimsical. The orders in the opinion of this Court cannot be sustained Accordingly, this revision shall stand allowed. The orders dated 21 July 2005 of the Tribunal, the order dated 11 January 2005 of the first appellate authority as also the order dated 31 January 2004 of the assessing authority are hereby set aside. The assessing authority shall have liberty to proceed in the matte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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