A.P. SINGH J.

Heard Shri Rakesh Kumar Agarwal for the petitioner and Shri M. C. Gupta on behalf of the respondent.

This sales as revision is directed against the order dated May 9, 1983 passed by the Sales Tax, Aligarh, in Second Appeal No. 442 of 1986 in respect of th assessment year 1980-81.

Learned counsel for the applicant has pointed out an apparent illegality in the order or the Tribunal to the effect that the Tribunal has arrived at the amount of Rs. 73,000 as the turnover of the assessee for the assessment year 1980-81 without any basis. The Sales Tax Officer had rejected the account books of the assessee and arrived at a sum of Rs. 2,03,972. 76, a sum of Rs. 1,50,735. 30 being the amount of theka money was also included. The Tribunal held that the amount of theka money could not be included for arriving at the turnover of the assessee. It, however, fixed a sum of Rs. 73,972. 26 as the turnover of the assessee as compared to the turnover of Rs. 2,03,972. 76 as fixed by the Sales Tax Officer but before arriving at the said figure the Tribunal has not disclosed the basis on which the said figure had been arrived at. If the amount of Rs. 1,50,735. 30 being the theka money is excluded as per the order of the Tribunal itself the resultant figure by way of turnover shall have to be reduced also by scaling down the amounts of profit and tax on tax which are relatable also to the theka money. This turnover thus arrived will be non-taxable.

Shri M. C. Gupta, learned Standing Counsel, had however, argued that since the accounts of the assessee had been rejected by the Sales Tax Officer and the said rejection has also been maintained by the Tribunal was justified in arriving at the figure of Rs. 73,000 as a taxable turnover of the assessee for the assessment year concerned.

The above argument of the learned Standing Counsel is misconceived. Even if the account books are rejected the Tribunal or any other taxing authority cannot arrive at an arbitrary amount of the taxable turnover of the assessee. It has to come to a particular figure on the basis of material on record or on some reasonable principle. Turnover is to be arrived at taking into account the purchases or sales made, which may be determined from the records either seized or found in the possession of the assessee. Arriving at a random figure without there being any basis of the same is not at all justified in tax law. In the circumstances, the amount of Rs. 73,972. 26 determined by the Tribunal as the taxable turnover of the assessee cannot be said to be assessment based on best judgment and is unjustified. In the result the revision succeeds and is accordingly allowed. The Tribunal is directed to make a consequential order regarding tax liability of the applicant after reducing the sum of Rs. 1,50,735. 30 which is theka money from the said turnover. The profit and tax on tax shall also be accordingly reduced.

A certified copy of this order may be made available to the counsel for the parties on payment of usual charges within a week.

Petition allowed.