Best-judgment turnover estimation must be supported by facts; unsupported yearly growth addition was rejected and turnover reduced.

Best-judgment assessment of turnover must rest on a rational factual basis and cannot include unsupported assumptions. The assessee's accounts were rejected, and enhancement based on increased investment and improved amenities was accepted on the facts. However, the further addition of 10% on the assumed basis of yearly turnover growth was found to lack justification. The daily sales turnover fixed at Rs. 480 was therefore not justified, and it was reduced to Rs. 440.

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Issues: Whether the determination of the assessee's daily sales turnover at Rs. 480 was justified on the facts and circumstances of the case.

Analysis: The assessee's accounts were rejected and the turnover was estimated on a best-judgment basis. The enhancement based on increased investment and improved amenities was accepted as a matter of fact, but the further addition of ten per cent on the assumed basis of a yearly increase in turnover was held to be unsupported by any justification.

Conclusion: The determination of daily turnover at Rs. 480 was not justified. The daily turnover was required to be scaled down to Rs. 440.

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