TMI Blog2010 (1) TMI 1113X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, the total taxable turnover would come less than ₹ 18,25,000 and in that event, the assessee is not liable to pay any tax. Accordingly, those two additions are deleted, the orders impugned in this revision are set aside. The tax case revision is allowed - 2083 of 2006 - - - Dated:- 7-1-2010 - MURUGESAN D. AND JANARTHANA RAJA P.P.S. , JJ. ORDER:- The order of the court was made by D. MURUGESAN J. This tax case revision is at the instance of the assessee. The assessee is conducting a vegetarian hotel and the total taxable turnover up to a sum of Rs. 18,25,000 is exempted from tax liability. The assessee disclosed a total taxable turnover of Rs. 11,35,566 for the assessment year 1991-92. While the accounts were called ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of taxable turnover was made by adopting the following formula: Purchase turnover as per accounts Rs. 7,50,415.00 Purchase suppression taxable and non-taxable goods go to the preparation of goods as inputs: Rs. 27,219.00 Rs. 1,49,573.00 Rs. 1,76,792.00 Add: 1 times addition Rs. 2,65,188.00 Rs. 4,41,980.00 Add: Fuel suppression estimated Rs. 50,000.00 Add: Wages paid as per accounts Rs. 84,564.00 Rs. 13,26,959.00 Add: 40% Gross profit Mr. S. Sivanandam, the learned counsel appearing for the petitioner, would submit that there is absolutely no material for addition of fuel suppression estimated as well as the addition of wages paid to the workers. Rs. 27,219.00 Rs. 18,84,962.00 Though ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STC 77 is referable. Of course, in that judgment, the apex court has held that in estimating any escaped turnover, it is inevitable that there is some guess-work. The assessing authority while making the best judgment assessment, no doubt, should arrive at his conclusion without any bias and on a rational basis. That authority should not be vindictive and 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. The facts of this case should be considered in the light of the above observations of the Supreme Court. For arriving at a best judgment, the assessing officer must have at least some materia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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