Accepted accounts limit turnover additions to amounts actually found omitted, not further estimated enhancement.

Where an assessment is completed under section 12(2) on accepted accounts, the assessing authority may add only the turnover actually found to have been omitted from the accounts. A further enhancement by estimate is not justified unless the accounts are rejected and a best judgment assessment is made under section 12(4). On the stated facts, the turnover could not be increased beyond the amount actually detected as left out of account.

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Issues: Whether, in an assessment completed under section 12(2), the assessing authority could enhance the returned turnover beyond the amount actually found to have been left out of the accounts.

Analysis: The assessment was completed under section 12(2) and not by rejecting the accounts or making a best judgment assessment under section 12(4). Where the accounts are accepted, the assessing authority may make additions to the returned figure only to the extent that the records disclose turnover left out of account. An estimate or further enhancement beyond the amount actually detected was not justified on these facts.

Conclusion: The assessing authority was not correct in enhancing the turnover beyond the amount actually found to be out of the accounts; only the amount actually left out could be added.

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