9911796707
TMI Blog2020 (8) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... 3-14, wherein the Assessing Officer adopted a gross profit (GP) of 160% as against the books of accounts of the assessee, which indicated a gross profit of 138.45%. In the other revisions, the impugned common order is with respect to the balance assessment years relevant for consideration, wherein the Assessing Officer adopted a GP of 190% as against that conceded for the respective assessment years between 143% and 184%. 2. The learned Counsel appearing for the assessee submitted that the action of the Assessing Officer as confirmed by the appellate authorities, goes against the basic principles of best judgment assessment as has been declared in Classic Marbles v. State of Kerala [(2009) 25 VST 295 (Ker.)]. There is absolutely no valid r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are purely questions of fact. In K.H.Floorings, though three questions were raised, the only question arising was the addition made of one and half times of the suppression detected, which is again a question on the sustainability of the estimation made. 5. We are unable to find any parallel with the decisions cited. In the present case, the specific question raised by the assessee is on the estimation of the turnover, which, though on facts, is raised on the ground that the same has been made purely on assumptions and presumptions and not on the basis of any material. 6. We have looked at the assessment order as found in S.T.Rev.No.22 of 2019, which led to the estimation made for the subject assessment years except that in 2013-14. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer; which should not be arbitrary and have nexus with the facts discovered. In the said case, on inspection a bill book was seized; which the assessee disowned at first, but later admitted to be of his. The turnover as revealed from the said bill book was not reflected in the books of accounts, on which a best judgment assessment was made. The Hon'ble Supreme Court held that though there is an element of guess work in making a best judgment assessment, the conclusion should be without any bias and on a rational basis. If the estimate made is a bona fide one, the mere fact that there is no good proof in support of that estimate is immaterial. The duty of the Court is to see whether the accounts maintained by the assessee wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee had sold any of the brands at a higher rate than that disclosed in the invoices. There was no rational basis to reject the invoices and consequently the books of accounts. 9. What we have said about the common order applies equally to the assessment year 2013-14, where again the different brands listed in a table from the two licensed premises were verified. The highest gross profit obtained in the AC counter and the Non-AC counter was relied on without reference to the brands and the nature of the business to make an estimation. 10. We are of the opinion that the estimation has been made on mere surmises and conjectures. There is absolutely no rational basis to reject the books of accounts and the estimation made has no nexus to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
