TMI Blog1976 (9) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... t in 1970 and 10 per cent in 1971 and, therefore, the sale fell down. It was also pleaded that the purchases were made on the advice of the head office. The explanation did not find favour with the assessing authority who determined the gross turnover for the year under reference on the basis of the GTO of 1969-70 and therefore reduced 15 per cent on account of slump in the market. No tax relief was given in respect of the goods sent to the head office of the value of Rs. 16,359.90 p. nor was any deduction from the TTO. allowed in respect of claim of Rs. 5,000 on account of sales to registered bealers. 2. Aggrieved against the assessment order the dealer filed an appeal which was heard and disposed of by Shri H.A. Arfi, Asstt. CIT, Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Export Trade Notice issued in those years had been filed. The dealer also produced a copy of Telex from the Head Officer which gave directions for not making any purchases. 3. It was argued before the appellate authority that no defects in the books of accounts were noticed and, therefore, in the absence of sufficient reason for rejection of those books, it was not proper to reject the same and enhanced the turnover. While dealing with that contention, the appellate authority observed, "I find that it was not simply the decline which resulted in the enhancement of sales but that the circumstances of the case were such which could not convince the total decline. Even if there is a general slump in the market, it cannot account for an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ording to the appellate authority this was not material and relevant because the dealer had admitted that he was not an exporter but only dealt with the exporters. Thus according to the appellate authority the quantum of enhancement did not appear to be without any basis. He observed that it was not necessary that there should be a positive proof regarding suppression of sales if the circumstances of the case so warranted the best judgment assessment had to be made which the assessing authority has done. In view of all this, the appellate authority did not interfere with the assessment order except to the extent of correction of the exact figures from the books of account. 5. Best judgment assessment is made in the circumstances mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own in the year in question, the returns cannot be rejected. It has not been proved that any sale had been suppressed or any transaction had not been included in the returns. In such circumstances the assessing authority, in my opinion, could not proceed to exercise his powers to assess the dealer to the best of his judgment. An assessing authority is vested with the jurisdiction to proceed according to best judgment assessment only if the finding of incorrectness or incompleteness of the returns submitted is given. No cogent reason appears in the orders of the assessing authority or the appellate authority for rejecting the dealer's accounts. 8. It was held in Shambhu Ratan Shailendra Kumar vs. Commissioner, Sales Tax, U.P. (1972 30 STC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn by the dealer in 1970-71. 10. Under the orders of the assessing authority the Sales tax Inspector did visit the premises of the dealer and in his report dt. 30th July, 1974 he had mentioned the following facts: (i) Goods are purchased on the device of the head office at Bombay and therefore, documentary evidence regarding purchase direction was asked which the incharge could not produce. (ii) As regards sales, it may not be out of place to mention that major share of sales are exports to foreign countries and there was lesser demands for the items sold. This fact was revealed by the other dealers dealing in the same trade. Nothing adverse was noticed. 11. The statement of Shri. Kalyana sundaram, incharge manager was also recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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