Rejection of books requires a rational turnover estimate; an unexplained best judgment assessment was sent back for fresh adjudication.

Rejection of books for non-production of the manufacturing account could support a best judgment assessment, but the Tribunal still had to record a rational basis for estimating turnover under the U.P. Trade Tax Act, 1948 and the Central Sales Tax Act, 1956. Because no reasons were given for the turnover estimate, the rejection of accounts alone was insufficient to sustain the assessment. The matter was therefore remitted to the Tribunal for fresh adjudication, with liberty to call for other account books maintained by the assessee.

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Issues: Whether the rejection of the books of account and the estimate of turnover were sustainable when the only specific defect noted was non-production of the manufacturing account.

Analysis: The assessment was founded on the allegation that the manufacturing account had not been produced. The reasoning disclosed that the Tribunal did not furnish any basis for the turnover estimate either under the U.P. Trade Tax Act, 1948 or under the Central Sales Tax Act, 1956. While non-maintenance of the manufacturing account could justify rejection of books and a best judgment assessment, the absence of reasons supporting the turnover estimate required reconsideration. The Tribunal was also left free to call for other account books maintained by the assessee.

Conclusion: The rejection of accounts could not by itself sustain the impugned estimate of turnover, and the matter had to be sent back to the Tribunal for fresh adjudication.

Ratio Decidendi: Where books of account are rejected for non-maintenance of the manufacturing account, the authority must still record a rational basis for estimating turnover; an unexplained estimate is liable to be reconsidered on remand.

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