Returned turnover may be accepted even after books are rejected if the disclosed figure is reasonable and proper.

Rejection of an assessee's books of account as unreliable does not, by itself, require rejection or upward estimation of the returned turnover. In a best judgment assessment, the proper course depends on the facts and material available, and the revisional authority may examine both the legality and propriety of the assessment. If the turnover disclosed appears reasonable and proper on the record, it may be accepted notwithstanding rejection of the books.

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Issues: Whether, after rejection of the assessee's books of account, the turnover returned by the assessee must necessarily be rejected or estimated at a higher figure.

Analysis: Rejection of account books as unreliable does not by itself compel rejection of the turnover disclosed by the assessee. In a best judgment assessment, the proper course depends on the facts and circumstances of the case, and the revisional authority under section 10 of the U.P. Sales Tax Act may examine not only legality but also propriety of the assessment. If the returned turnover appears reasonable and proper on the material available, it may be accepted notwithstanding rejection of the books.

Conclusion: The returned turnover need not necessarily be rejected merely because the books of account were rejected, and it may be accepted if it is found reasonable and proper.

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