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1 - 4 of 4 (0.19 seconds)H.M. Esufali, H.M. Abdulali Siyagunj vs Commissioner Of Sales Tax, M.P., Indore on 2 December, 1968
In this connection, the learned counsel for the assessee relied upon the case of H.M. Esufali H.M. Abdulali v. Commissioner of Sales Tax [1969] 24 S.T.C. 1. In that case a Division Bench of the Madhya Pradesh High Court found that the estimate of escaped turnover under the local and the Central Acts for the entire period 1st November, 1959, to 20th October, 1960, made by the Sales Tax Officer was based on mere guess-work and was without any proper basis. It held that as the escaped turnover proved was only Rs. 31,171.28, the assessee was liable to be assessed under both the Acts only on the taxable turnover comprised in the escaped turnover of Rs. 31,171.28. Learned counsel for the petitioner contended that in the present case also as the escaped turnovers for the two years actually found by the Sales Tax Officer were Rs. 10,60,000 and Rs. 18,00,000, he could not arbitrarily and purely on guess-work determine the petitioner's taxable turnovers at Rs. 35,00,000 and Rs. 41,00,000.
Commissioner Of Sales-Tax, Madhya ... vs M/S. H.M. Esufall, H. M. Abdulali, ... on 18 April, 1973
We find that the decision of the Madhya Pradesh High Court, in the aforesaid case, has since been overruled by the Supreme Court in the case of Commissioner of Sales Tax, Madhya Pradesh v. H.M. Esufali H.M. Abdulali A.I.R. 1973 S.C. 2266, wherein it has been held that in estimating any escaped turnover it is inevitable that there will be some guess-work though it must have a rational basis without bias, caprice or vindictiveness. The basis adopted in estimating the turnover must have reasonable nexus with the estimate made. If the basis adopted is held to be a relevant basis, the estimate made by the assessing authority should not be disturbed even though courts may think that it is not the most appropriate basis.
Article 226 in Constitution of India [Constitution]
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