Rejection of account books depends on year-specific evidence; survey material from another year cannot justify rejection for the later assessment year.

Account books for assessment year 1977-78 were validly rejected because the survey material showed adverse stock position, and the turnover estimate was upheld as a factual finding with no error of law shown. For assessment year 1978-79, rejection of the books was unsustainable because it rested only on survey material from an earlier year, and such material could not by itself justify rejection for the year in question. The challenge therefore failed for 1977-78 and succeeded for 1978-79, giving the dealer only partial relief.

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Issues: (i) Whether the account books could be rejected for assessment year 1977-78 on the basis of the survey material and whether the estimate of turnover called for interference. (ii) Whether the account books could be rejected for assessment year 1978-79 on the basis of material found in a survey relating to an earlier assessment year.

Issue (i): Whether the account books could be rejected for assessment year 1977-78 on the basis of the survey material and whether the estimate of turnover called for interference.

Analysis: The rejection of account books for 1977-78 was supported by the survey dated 4 September 1977, in which the stock position was found to be adverse to the dealer. The Tribunal's conclusion on this aspect rested on findings of fact. No error of law was shown in the estimate of turnover.

Conclusion: The rejection of account books for assessment year 1977-78 was upheld and the revision for that year failed.

Issue (ii): Whether the account books could be rejected for assessment year 1978-79 on the basis of material found in a survey relating to an earlier assessment year.

Analysis: The rejection for 1978-79 was based only on the survey dated 4 September 1977, which did not relate to that assessment year. Material from a survey pertaining to a different assessment year cannot be used to reject account books for the year in question, and no other adverse material was relied upon.

Conclusion: The rejection of account books for assessment year 1978-79 was unsustainable and the revision for that year was allowed.

Final Conclusion: The dealer succeeded only for assessment year 1978-79, while the challenge for assessment year 1977-78 was rejected, resulting in a partial relief.

Ratio Decidendi: Account books cannot be rejected for a particular assessment year solely on the basis of survey material relating to a different assessment year unless there is relevant supporting material for the year under consideration.

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