Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2008 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (7) TMI 941 - KERALA HIGH COURTWhether the additions made on account of suppression of inter-State purchases and sales should be only for the value of actual suppression noticed or whether the assessing authority, after rejecting the books of accounts and the returns filed, could make further addition, apart from the actual suppression? Held that:- In the instant case, the assessee had filed its annual returns and in that had conceded a particular turnover as total and taxable turnover. Before completion of the assessment proceedings, the check-post authorities had furnished the check-post declarations to the assessing authority in regard to the consignments received by the assessee. Since the assessee had not reflected in the books of account and also in the returns filed about the goods purchased under those check-post declarations, the assessing authority, after rejecting the returns filed by the assessee, has proceeded to pass best judgment assessment. The assessee, apart from denying the transaction, had not produced any other material by way of rebuttal evidence before the assessing authority. Therefore, the assessing authority has proceeded to accept the check-post declarations and has completed the best judgment assessment and while doing so, has made certain additions towards the probable omissions of sales and purchases. While completing the best judgment assessment, the basis that is adopted by the assessing authority is the transactions reflected in the check-post declarations. It is on rational basis that a best judgment assessment could be passed. The best judgment assessment passed by the assessing authority cannot be replaced by this court by yet another best judgment assessment unless the said assessment is wholly arbitrary and whimsical. Against assessee.
|