9911796707
TMI Blog1993 (10) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... not reflected in the regular books of account. For the period April 1, 1981 to March 31, 1982, the petitioner had submitted returns of his gross and taxable turnover containing the gross turnover of Rs. 24,49,006. From the said turnover, deduction was claimed in respect of taxpaid goods under section 2(r)(ii) at Rs. 19,94,357 and the taxable turnover was shown at Rs. 4,54,650. This deduction claimed was in respect of raw material which was said to be tax-paid, purchased by him for manufacture of the feeds and sold them in the market. 2.. The taxing authorities, taking into consideration the suppression, determined the gross turnover at Rs. 26,40,000 and taxable turnover at Rs. 10,44,800 and the claim for deduction was also reduced by 5 la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional basis. That authority should not be vindictive or capricious. If the estimate made by the assessing authority is a bona fide estimate and is based on a rational basis, the fact that there is no good proof in support of that estimate is immaterial. Prima facie, the assessing authority is the best judge of the situation. It is his 'best judgment' and not of anyone else." 9.. We may also refer to the judgment reported in [1993] 89 STC 186 (Ker) (Siva Traders v. State of Kerala). It has been stated that it was open to the factfinding authority to infer that the assessee had large scale dealings outside the accounts for the whole year, though it is not possible to find out precisely the turnover suppressed which could make an estimate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material, yet it was not reflected in the regular course of account. The assessing authorities failed to arrive at the extent of sales on the basis of loose papers found. It was necessary for them to arrive at the extent of concealment and then enhance the gross turnover for purposes of determining the taxable turnover. That being so, even though there is suppression, the determination of the turnover does not appear to be based on material and is on the higher side and guess-work cannot be said to be reasonable or bona fide. 12.. While making a deduction in respect of the tax-paid goods, the deductions were arbitrarily reduced. At the same time, it cannot be disputed that the assessee had not filed a correct return and as such, impositio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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