GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (8) TMI 3 - ALLAHABAD HIGH COURT

2016 (8) TMI 3 - ALLAHABAD HIGH COURT - TMI - Escaped turnover of purchases and sales - validity of tribunal order - Held that:- The order of the Tribunal is totally silent on the basis of which this was arrived at. - The principles applicable to an assessment taken to the best of judgment are no longer res integra. - Following the decision in the case of State of Kerala v. C. Velukutty [1965 (12) TMI 32 - SUPREME Court], mater remanded back - Decided in favor of assessee. - Sales/Trade Tax Revi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mpted under section 4-A of the U.P. Trade Tax Act 1948. The assessing authority pursuant to a survey of the premises of the revisionist found as many as eight documents which did not appear to have been accounted for in the books. During the course of assessment, assessing authority proceeded to accept the explanation of the revisionist in respect of the material so gathered except in relation to Exhibit-4. As is described in the order of assessment, Exhibit-4 is stated to evidence a sale of 72 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he same figures for the months of April, May, June and July. It accordingly proceeded to undertake a best judgment assessment and estimated the purchase for these four months to be ₹ 23,00,000 and the sale in these four months to be ₹ 25,00,000. Not finding success before the first appellate authority, the revisionist preferred a second appeal before the Tribunal which has proceeded to reduce the value of undisclosed purchases to ₹ 12,50,000/- and sales to ₹ 11,50,000/-. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ok note of the fact that the assessing authority had not found any material which may have tended to indicate an intention to evade tax in any period after the date when the survey was undertaken namely on 27 July 2001. On this score also, the Tribunal found that the order of the assessing authority and its estimation of escaped purchases and sales was unsustainable. Having arrived at this conclusion, the Tribunal however, proceeded to reduce the escaped turnover of purchases and sales to ₹ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ection 23(4) of the Income Tax Act. The said expression in the Income Tax Act was subject of judicial scrutiny. The Privy Council in CIT v. Laxminarain Badridas [ 1937 5 ITR 170, 180] has considered those words. Therein it observed: "He (the assessing authority) must not act dishonestly, or vindictively or capriciously because he must exercise judgment in the matter. He must make what he honestly believes to be a fair estimate of the proper figure of assessment, and for this purpose he must .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e recognizing that an assessment made by an officer to the best of his judgment involved some guess work, emphasised that he must exercise his judgment after taking into consideration the relevant material. The view expressed by the Privy Council in the context of the Income Tax Act was followed when a similar question arose under the Sales Tax Act. A Division Bench of the Calcutta High Court in Jagadish Prosal Pannalal v. Member, Board of Revenue, West Bengal [1951 2 STC 27] confirmed the asses .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he rush of the customers and the stock in the shop and also the estimate made by the Assistant Commissioners in the previous quarters. 10. Under Section 12(2)(b) of the Act, power is conferred on the assessing authority in the circumstances mentioned thereunder to assess the dealer to the best of his judgment. The limits of the power are implicit in the expression "best of his judgment". Judgment is a faculty to decide matters with wisdom truly and legally. Judgment does not depend upo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version