Sales accounts cannot be rejected without specific defects; best judgment assessment fails when returned turnover is supported by vouchers.

Sales accounts supported by vouchers could not be rejected merely because purchase accounts were not fully vouched or because an assumed purchase-to-sales ratio was not met. Where the sales accounts were accepted and no specific defect in them was established, the basis for best judgment assessment failed. The returned sales turnover was therefore treated as unjustifiably rejected, and tax was directed to be recomputed on the assessee's returned sales turnover.

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Issues: Whether the rejection of the assessee's sales turnover and the consequent best judgment assessment were justified.

Analysis: The sales accounts were accepted as supported by vouchers. The rejection rested mainly on defects alleged in the purchase accounts and on failure to satisfy the working rule based on purchase turnover. Once the sales accounts were found acceptable and not defective in any ascertained particulars, they could not be discarded merely because purchases were not fully vouched or because the sales did not meet the assumed turnover ratio.

Conclusion: The rejection of the returned sales turnover was unjustified. The assessment was set aside and the tax was directed to be recomputed on the basis of the sales turnover returned by the assessee.

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