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TMI Blog1998 (5) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... sales as returned and proceeded to make best judgment assessment. 2. As per returns the total turnover was ₹ 56,95,150/-. The Assessing Officer took the year 1982-83 as the basis for assessment, in which year the figure of total turnover was ₹ 98,52,500/-. The Assessment Officer determined the total turnover for 1983-84 at ₹ 1,25,00,000/-. 2.1. The relevant part of the order of assessment under the Local Act is extracted and reproduced hereunder: In response to ST 13, Shri Anil Verma, Advocate appeared for the last time with the aforesaid books on 29.3.88. The dealer did not produce cash book. When purchase vouchers were demanded from the dealer, the same were also not produced. One purchase voucher which is for & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of hearing Mr. S.K. Dholakia, the learned Senior Counsel for the petitioner pointed that for the years preceding and succeeding the year in question the turnover of the petitioner assessed has been assessed as under: The above said factual position is not disputed on behalf of the respondents. 6. By reference to the copy of order sheets, showing the record of proceedings before the Assessment Officer filed as Annexure P-1, the learned Counsel for the petitioner pointed out that several dates of hearing were appointed between 22.4.87 and 15.3.88, but the Assessing Officer did nothing to make any progress in the matter of assessment. The hearings were simply adjourned. However, since 15.3.88, the Assessing Officer suddenly swung ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly be guesswork in the matter, it must be honest guesswork. In that sense, too, the assessment must be to some extent arbitrary. 8. In Raghubar Mandal Harihar Mandal Vs . State of Bihar, [1958]1SCR37 , dealing with Section 10(2) of Bihar Sales Tax Act, 1944, their Lordships have held: The Assessing Authorities under Section 10(2)(b) are not entitled, after rejecting the returns and books of accounts of the assessee, proceed to estimate the gross turnover and made an assessment without reference to any evidence or any material at all, indulging in pure guess work. 9. In State of Kerala Vs . C. Velukutty [1966]60ITR239(SC) , their Lordships have held : The limits of the power are implicit in the expression best of his judgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealings outside the accounts then it was not possible to find out precisely the turnover suppressed and only an estimate thereof can be made on the basis of the material before him . So long as the estimate made by the Assessing Officer was not arbitrary and had a reasonable nexus with the facts discovered, it could not be questioned, though material cannot be expected to be available before the Assessing Officer to prove the exact turnover suppressed. Their Lordships have further held : In estimating any escaped turnover, it is inevitable that there is some guesswork. The Assessing Authority while making the best judgment assessment, no doubt, should arrive at his conclusion without any bias and on a rational basis. That authority sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reference to any evidence or materials at all was held to be unsustainable. 14. To sum up, the principles governing a best judgment assessment are: i) A best judgment assessment is not a wild assessment. Exclusion of arbitrariness and caprice is an obligation implicit in the power to assess to the best of judgment. ii) Assessment to the best of judgment must be founded upon some rational basis, relevant material and logic so that nexus between such basis or material and the figure of assessment arrived at can be objectively seen though some amount of guess work or estimation is to be allowed like a play in the joint. iii) It is not necessary that evidence in the nature of good proof should be available on record to support the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requiring the payment of interest on Central Sales Tax, the Sales Tax Authorities of the State cannot, for the purpose of collecting and enforcing payment of Central Sales Tax, charge interest thereon. 17. For the foregoing reasons, the petition is allowed. The impugned orders of assessment dated 28.3.88 (Annexure P-2) made under Delhi Sales Tax Act, 1975 and the one made under Section 9 of the Central Sales Tax Act, 1956 for the period 1983-84 are both set aside. The orders passed in revision and review sustaining the above said orders are also set aside. The Assessment Officer shall be at liberty to take up the assessment and frame an order afresh consistently with the principles of law laid down hereinabove and after affording the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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