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2019 (1) TMI 1094 - HC - VAT and Sales TaxBest Judgement Assessment - power of estimation conferred on the Assessing Officer - sub-Sections (9) and (10) of Section 22 - when a suppression is detected and the same is permitted to be regularised by filing of a return as provided under sub-Section (10) of Section 22, could there be a best judgment assessment estimating turnover, to cover up the probable omissions and suppressions? - Held that:- In the KVAT Act the completion of assessment as contemplated in Section 21 is on the filing of a return; a self assessment. The deeming fiction of regularisation of assessment and completion, under sub-section (10) only saves the assessee from an assessment under Section 22 for reason of the return originally filed being defective. Section 22 (10) is also subject to Sections 24 and 25 of the Act; ie: an assessment completed under Section 21 is capable of being re-opened under Section 25 for assessment of escaped turnover wherein the Assessing Officer is conferred with the power to carry out assessment to the best of his judgment. In the present case, three diaries were recovered from the premises of the assessee. There can be no presumption that there were no other suppressions. The assessee would not keep the entire details of suppression available for detection. The three diaries also found 72 instances of suppression over nine months of the subject year. There is a definite pattern of suppression established from the recovered documents and best judgment is permissible to cover up the probable omissions and suppressions. Review petition dismissed.
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