Rejection of verifiable account books needs cogent reasons; a low selling rate alone cannot justify discarding returned turnover.

The assessment could not be sustained where duly maintained account books were not specifically rejected and the returned turnover was discarded only because the average brick selling rate appeared low. Under the U.P. Sales Tax Act, best-judgment determination arises only when the return is found incorrect or incomplete, and books maintained in the ordinary course and open to verification cannot be ignored without legal and cogent reasons. A low selling rate by itself is not a defect and does not justify rejection of verifiable accounts unless there is a finding that the books or supporting records are false, unreliable, incorrect, or incomplete.

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Issues: Whether the assessment could be sustained when the account books were not specifically rejected and the turnover was discarded only because the average selling rate of bricks appeared low.

Analysis: Section 7 of the U.P. Sales Tax Act permits determination of turnover to the best of judgment only where the return is found incorrect or incomplete. Section 12 requires a dealer, and in the case of a manufacturer additional stock and production accounts, to maintain true and correct books. Where the books are maintained in the normal course of business and are open to verification, they cannot be discarded lightly. Rejection of account books is a serious matter and must rest on legal and cogent reasons, with satisfactory proof that the accounts are unreliable, incorrect or incomplete. A low average selling rate by itself is not a defect in the books and does not justify discarding the returned turnover in the absence of a finding that the books or supporting documents were false or unverifiable.

Conclusion: The assessment could not be sustained on the basis adopted by the revenue authorities, and the turnover returned on the basis of the account books could not be rejected merely because the selling rate seemed low.

Ratio Decidendi: Rejection of duly maintained and verifiable books of account cannot rest solely on a low selling rate or conjecture; it requires specific findings and cogent reasons showing that the accounts are unreliable, incorrect or incomplete.

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