TMI Blog2022 (4) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... s such in the aforesaid category at serial no. 103 and, therefore, liable to be taxed at a lower rate. Further counsel for the revisionist submits the the tax on purchase was also levied and, if the dealer deposit the tax on the same than as per the provisions of Section 13 of the Act, he is entitled for input tax credit on the full amount of the tax paid to him on purchase - To the said averment, learned standing counsel submits that for redetermining the benefit of input tax credit, the matter has to be examined by the Assessing Authority. The revisions are allowed in part and the matter is remanded to the Assessing Authority for the purpose of redetermining the input tax credit. - Sales/Trade Tax Revision No. - 414 of 2016, 415 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the material and contemporaneous record which is found in the possession of the assessee. Estimation cannot be capricious or whimsical. It must necessarily be imbued with the characteristics of an empirical exercise which must necessarily be undertaken in order to adjudge the tax liability. When the material found in relation to sale for the present assessment year is of ₹ 30,917/- only? 2.) Whether on the facts and circumstances of the case, the Commercial Tax Tribunal as well as authorities below were justified in not granting the benefit of Input Tax Credit as provided under Section 13 of the Act in view of law laid down by this Court in the case of Deep Murmura Products, Baraut, Allahabad vs. CCT report in 2014 NTN (Vol.56) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, Bilsanda vs. C.T.T. reported in 2016 NTN (Vol. 61)-204 in which it has been held that Being not oblivious of the fact that a best judgment assessment would necessarily entail an estuimation and by the very nature of things involve a certain degree of guess work, this Court cannot loose sight of the fact that the estimation/assessment itself has to have some correlation or connection to the material and contemporaneous record which is found in the possession of the assessee. Estimation cannot be capricious or whimsical. It must necessarily be imbued with the characteristics of an empirical exercise which must necessarily be undertaken in order to adjudge the tax liability. When the material found in relation to sale for the present asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant firm? Learned counsel for the revisionist submits that the revisionist is engaged in the business of trading of cigarette, match box, sugar candy, pan masala etc. The business premises of the revisionist was surveyed on 19th April, 2011. At the time of survey, some items, namely, kesar thandai, mango syrup, shikanji and gulab jal were found. The explanation was submitted that a seasonal business is being undertaken by the son of the proprietor of the firm. The seasonal business though have been accepted by the department but the turn over has been enhanced to 7.5 lacs and nine lacs respectively for the two assessment years. At the time of survey, only alleged concealment of ₹ 30,917/- was found but as to the said conceal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cepted by the authorities. The only issue now left for consideration by the Court is to determine the taxable turn over on the suppressed material found at the time of survey and at what rate such items could be accessed. Counsel for the revisionist submits that at the time of survey, the only alleged suppression of 30,917/- was found and that too the seasonal business of four months has been accepted by the revenue than such an high estimate cannot be determined. He submits that the best judgment assessment would necessarily entail an estimation and by the very nature of things involved a certain degree of guess work but at the same time, estimation cannot be permitted on whimsical basis. The suppression of four months have been estimat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nput tax credit, the matter has to be examined by the Assessing Authority. In view of the facts and circumstances of the case and the arguments raised by learned standing counsel and the law laid down by this Court in the case of Deep Murmura Products, Baraut, Allahabad vs. CCT report in 2014 NTN (Vol.56) 262 in which this Court has held that in the event of best judgment assessment, if the liability of tax arises and the excess tax has been paid that the dealer is entitled for input tax credit. The matter is remanded to the Assessing Authority for recomputing the amount of input tax credit as per Section 13 of the Act. The revisions are allowed in part and the matter is remanded to the Assessing Authority for the purpose of redetermi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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