High Court of Judicature at Allahabad
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M/S Neeru Ispat Pvt Ltd v. The Commissioner Of Trade Tax, U.P., Lucknow - SALES/TRADE TAX REVISION No. 405 of 2004  RD-AH 1181 (15 October 2004)
TRADE TAX REVISION NO.405 OF 2004
M/s Neeru Ispat Pvt. Limited, Bulandshahr. .....Applicant
The Commissioner of Trade Tax, U.P., Lucknow. ....Opp.party
Hon'ble Rajes Kumar, J.
Present revision under Section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") is directed against the order of Tribunal dated 26.12.2003 relating to the assessment year 1996-97 under the U.P. Trade Tax Act.
Applicant was engaged in the business of manufacture and sales of M.S.Ingots and alleged to have maintained the books of account and had disclosed taxable sales at Rs.4,38,73,904/-. Assessing authority passed ex-parte order and estimated the turn over at Rs.9 crores. First appeal, filed by the applicant was rejected. Applicant filed second appeal, which has also been rejected.
Heard learned counsel for the parties.
Admittedly, applicant had not produced books of account at any stage. Therefore, taxable turn over has to be estimated by way of best judgment assessment. It is settled principal of law that best judgment assessment should be made on the basis of material and should not be arbitrary. In the present case, Tribunal has confirmed the estimate of taxable turn over at Rs. 9 crores as against the disclosed taxable turn over at Rs.4,38,73,904/- merely on the ground that in the previous year as against the disclosed turn over at Rs.1,16,59,109/- , turn over was fixed at Rs.2.50 crores. In my view, estimate of turn over at Rs.9 crores is without any basis. Previous year assessment, no doubt is the best guide, but it should be considered that what was basis for estimate for the turn over in the previous year and what is material available for the year under consideration for the estimate of turn over. Applicant had disclosed progressive turn over in the year under consideration. While estimating the turn over by way of best judgment assessment, Tribunal ought to have consider the material on record and the various other factors. In my view, matter requires re-consideration.
In the result, order of Tribunal is set aside and the matter is remanded back to the Tribunal to decide the appeal afresh.
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