Turnover enhancement sustained on the basis of loose sheets, unrecorded purchase bills, and defective account maintenance.

Turnover enhancement was sustained where loose sheets found at the business premises contained orders, the assessee's claim that they were cancelled was unsupported by contemporaneous evidence, purchase bills were not recorded in the books, and the cash book was not written up to date. Those defects in account maintenance justified rejection of the explanation and the reduced enhancement of turnover. The appeal therefore failed.

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Issues: Whether the enhancement of turnover could be sustained on the basis of loose sheets, unrecorded purchase bills, and incomplete maintenance of accounts.

Analysis: The loose papers recovered at the business premises contained orders, and the dealer's explanation that they had been cancelled was not supported by any contemporaneous evidence from the persons concerned. The bills relating to purchases were also not reflected in the books, and the cash book was not written upto date, showing defects in the maintenance of accounts. In these circumstances, the authorities below were justified in rejecting the explanation and in sustaining the reduced enhancement of turnover.

Conclusion: The enhancement of turnover was upheld and the appeal failed.

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