Projected bank turnover figures cannot alone justify reassessment without independent evidence of suppressed sales.

Projected turnover figures furnished to a bank for securing loans and enhanced credit facilities could not, by themselves, be treated as actual taxable turnover under trade tax law. Where the dealer explained that the figures were only estimates for banking purposes, supported by a bank certificate and surrounding circumstances, and the original assessment had accepted the books without adverse discrepancy, the department was required to prove suppression with independent material. In the absence of any such evidence, reassessment based solely on the bank figures was not justified, and the burden of proving undisclosed turnover remained undischarged.

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Issues: Whether projected and enhanced turnover figures furnished to a bank for obtaining loans could, without further supporting material, form the basis of reassessment and enhancement of taxable turnover under the trade tax law.

Analysis: The reassessment was founded only on the higher figures shown before the bank. The dealer explained that those figures were projected to secure a housing loan and higher cash credit facilities, and the explanation was supported by the bank certificate and surrounding circumstances. The original assessment had accepted the books of account, found no discrepancy, and recorded no adverse material. The department produced no independent evidence to show that the figures supplied to the bank represented actual sales or that there were undisclosed transactions outside the books. In such circumstances, the burden remained on the department to establish suppression of turnover, and that burden was not discharged.

Conclusion: The projected bank figures could not, by themselves, justify reassessment or determine actual taxable turnover. The revision succeeded and the assessee's challenge was accepted.

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