Suppressed turnover can be estimated from proven sales data when account books are rejected and evidence supports extrapolation.

Rejected account books may justify estimation of suppressed turnover on relevant material, and some element of guesswork does not invalidate the assessment where the estimate is grounded in evidence. Here, suppressed sales for one day provided a factual basis for extrapolating turnover for the wider period, and that material was sufficient to support the estimate of suppressed inter-State sales. The estimate was therefore upheld in favour of the Revenue and against the assessee.

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Issues: Whether there was material to justify the assessment of suppressed inter-State sales at Rs. 1,12,437.

Analysis: The account books had been rejected, requiring the turnover to be estimated on relevant material. The record showed suppressed sales for one day alone of Rs. 6,045.76, and an estimate of suppressed turnover could validly be founded on such material, even though some element of guesswork is inherent in estimation. The suppressed sales for a particular period could form the basis for estimating turnover for the whole year.

Conclusion: The question was answered in the affirmative. The estimate of suppressed turnover was supported by material and was upheld in favour of the Revenue and against the assessee.

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