Wallach v. Tax Appeals Tribunal

Proceeding pursuant to CPLR article 78 (initiated in this Court pursuant to Tax Law § 2016) to review a determination of respondent Tax Appeals Tribunal which sustained a sales and use tax assessment imposed under Tax Law articles 28 and 29.

Petitioners, a corporation which operates a jewelry store in Westchester County and one of its officers, contend that the use and application of a test period audit to determine the *697corporation’s sales tax liability for the entire audit period was arbitrary and capricious. Although it appears from the record that the corporation failed to exhaust…