1973 (4) TMI 49 - SUPREME COURT

Whether there is a reasonable nexus between the basis adopted by the assessing authority and the estimate of escaped turnover made?

Held that:- Allow these appeals, vacate the answers given by the High Court to questions Nos. (1) and (3) and answer those questions in favour of the department, i. e., that the estimate of taxable turnover under the "State Act" and the "Central Act" made by the assessing authority for the period from November 1, 1959, to October 20, 1960, on the basis of ₹ 31,171.28 as the escaped turnover for a period of 19 days was legal and justified and, consequently, the penalty of ₹ 2,000 imposed on the assessee was in accordance with law