TMI Blog1974 (1) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... ification No. 18109/CTB/52/62-F dated 27th April, 1962, confers territorial jurisdiction on the Sales Tax Officer, Intelligence Circle (Vigilance), to assess the petitioner, who is a registered dealer of another circle? (3) Whether, in an assessment under section 12(8), the assessing officer is legally empowered to pass best judgment assessment and not to limit the enhancement to the quantum of escaped turnover only? (4) Whether, in the facts and circumstances of the case, there was violation of principles of natural justice in making the order of assessment; if so, whether the Tribunal was justified to uphold the assessment? (5) Whether the bald enhancements of 20 per cent of the gross turnover in the year 1964-65, and 5 per cent for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessing officer, which was ultimately reduced to 5 per cent in second appeal for the year 1965-66, are arbitrary, vindictive and contrary to the accepted principles of best judgment assessment. 4.. This court in several cases has already decided that there is no warrant in a best judgment assessment that the enhancement of the turnover has to be confined to the escaped turnover. The Supreme Court in a recent decision in the case of Commissioner of Sales Tax v. H.M. Esufali H.M. Abdulali[1973] 32 S.T.C. 77 (S.C.)., has categorically ruled against the assessee's contention. Our answer to question No. (3) referred to above, therefore, shall be that "in an assessment under section 12(8) of the Act, the assessing officer is not bound ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a nexus is maintained between the estimate and the escaped turnover, there is no scope for any interference. The estimate is required to be according to the best judgment of the assessing officer and the High Court in a reference would, therefore, have no jurisdiction to substitute its best judgment for that of the statutory authority. But, where there is caprice or arbitrariness in making the assessment according to the best of judgment, the same becomes vulnerable. A Bench of this Court in the case of Allied Dealers v. State of Orissa[1972] 29 S.T.C. 484., relying upon an earlier decision of the Supreme Court has indicated the limitations, which, in our view, are appropriate. 6.. While reassessing for the year 1964-65, the assessing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if allowances are made on these grounds, it may be reasonable to assume that such suppressions may have been on 300 days during the year. In that event, the suppressed gross turnover would be in the range of about rupees one and half lakhs. It may be reasonable to assume that suppressions have mostly been in respect of taxable transactions and, therefore, there may not be any warrant to hold that taxable turnover must be fixed at one-fourth of the said estimated gross turnover keeping the normal proportion in view. If the suppressed taxable turnover is estimated at fifty per cent of the estimated gross turnover, it may not be unreasonable. These we have indicated only as guidelines because we do not intend to make an estimate ourselves. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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