Turnover enhancement cannot rest on non-production of books alone without findings of suppressed sales or defective accounts.

Turnover enhancement cannot be sustained merely because account books were not produced at the time of visit when no suppression of sales or defects in the returns or accounts are found. Where the assessing authority records no definite finding that the books are incorrect or incomplete, and the dealer's earlier returns had been accepted, an arbitrary increase in turnover is not justified. On those facts, the enhancement was deleted, while the assessment was otherwise confirmed.

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Issues: Whether the enhancement of turnover could be sustained in the absence of any finding of suppression of sales or defects in the accounts.

Analysis: The assessing authority enhanced the sales merely because the account books were not available at the time of visit and were said to be with the accountant. No specific finding was recorded that the dealer had suppressed sales, and no defect in the returns or account books was pointed out. The dealer's past returns had also been accepted in earlier orders. In these circumstances, an arbitrary enhancement of turnover could not be justified without a definite conclusion that the accounts were incorrect or incomplete.

Conclusion: The enhancement of turnover was deleted and the appeal was allowed to that extent; the assessment was otherwise confirmed.

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