TMI Blog2020 (5) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... d discharged the tax liability of ₹ 75,180/- towards suppressed turnover of ₹ 5,56,982/-. It is obvious that the pattern of maintaining the account books was not in order. On rejecting the accounts and the VAT-100 Form submitted by the assessee, the prescribed authority has made best judgment assessment by adding the turnover equal to the suppressed turnover over and above detection made. It is imperative that no suppression would have come to light in the absence of inspection - There being rationale behind estimation of the turnover, same cannot be held to be untenable. The appellate authority has merely proceeded to set-aside the addition of turnover without examining the applicability of the judgments referred to supra in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod in question, re-assessment order was passed by the prescribed authority under Section 39(1) of the Act rejecting the VAT-100 Form filed for the said period and concluding the best judgment assessment by making addition towards suppressed turnover of ₹ 5,56,892/- based on the intelligence report. The appeal preferred before the 2nd respondent-Joint Commissioner of Commercial Taxes came to be partly allowed setting aside the addition made by the prescribed Authority equal to the shortage of stock quantified above the stock difference reported as well as interest aspects. 3. The 3rd respondent having found the appellate order being erroneous and prejudicial to the interest of the Revenue initiated suo-moto revision proceedings un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs. M/s. N.P. Bharmaiah Sons. ii) M/s. Jagadeesh Trading Company Vs. The Additional Commissioner (ILR 1998 KAR 949). 6. Smt. K. Vidyavathi, learned Addl. Advocate General supporting the impugned order submitted that the prescribed authority having found the shortage of physical stock noticed by the Enforcement Authority at the time of inspection at the assessee s business premises on 24.3.2011 and the offence having compounded by the assessee, has rightly rejected the VAT return and concluded the best judgment assessment based on the intelligence report. The appellate Authority sans appreciating the same has set-aside the addition of turnover made placing reliance on the judgment of M/s. Jagadeesh Trading Company (supra) and N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me guess work. The Assessing Authority while making the best judgment assessment, no doubt, should arrive at its conclusion without any bias and on a rational basis. Considering the assessee s dealings outside the accounts for 19 days, it is held that it was open to the Officer to infer that the assessee had large scale dealings outside his accounts and it was applied for the entire assessment year observing that in such a situation, it was not possible for the officer to find out precisely the turnover suppressed. It could only make an estimate of the suppressed turnover on the basis of the material before him. So long as estimation made by him is not arbitrary and has nexus, it could not be questioned. 11. In the case of M/s. Sri. Durg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions regarding the second sales has upheld the order of the Tribunal. It is not forthcoming whether the said best judgment assessment was made after rejecting the accounts or not. 15. In the light of the aforesaid judgments, what could be enunciated is that where the accounts are acceptable as genuine and substantially correct, the assessment could be made on the basis of the accounts maintained. Indisputably, the assessee has compounded the offence by accepting the suppression at the time of inspection and discharged the tax liability of ₹ 75,180/- towards suppressed turnover of ₹ 5,56,982/-. It is obvious that the pattern of maintaining the account books was not in order. On rejecting the accounts and the VAT-100 Form su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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