Taxable turnover requires proper factual enquiry where closure of business and seizure of stock are specifically disputed.

Under the M.P. General Sales Tax Act, 1958, an ex parte assessment and revisional order sustained turnover by relying on the previous year's record even though the assessee specifically claimed that the shop was closed and stock had been seized during the relevant assessment period. The text states that, where such a factual dispute is raised, taxable turnover cannot be fixed merely from prior-year figures without a proper enquiry into the actual business position for the period in question. The revisional authority was said to have failed to examine the matter adequately, and the impugned orders were set aside with a remand for fresh consideration in accordance with law.

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Issues: Whether the ex parte assessment and the revisional order sustaining turnover on the basis of the previous year's record were justified when the assessee claimed that the shop was closed and the stock was seized during the relevant assessment period.

Analysis: The assessment was made under section 18(4) of the M.P. General Sales Tax Act, 1958 and the revision was pursued under section 39(1) of the same Act. The record showed that the assessee had raised a specific contention before the revisional authority that, during the relevant assessment year, the shop remained closed and the stock stood seized, so that no sales took place. In such a situation, the taxable turnover could not properly be determined merely by relying on the earlier year's turnover without a proper enquiry into the factual position. The revisional authority failed to examine the matter adequately and proceeded on an unsatisfactory inference from prior records.

Conclusion: The ex parte assessment and the revisional order were not justified, and the matter required fresh examination by the assessing authority.

Final Conclusion: The impugned orders were set aside and the matter was remanded for reconsideration in accordance with law, resulting in relief to the assessee.

Ratio Decidendi: Where an assessee specifically disputes taxable turnover on the ground that the business premises were closed and stock was seized, assessment cannot rest on prior-year figures without a proper factual enquiry into the relevant period.

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