https://www.taxtmi.com/caselaws?id=155462 Accounts could not be rejected merely because the dealer failed to maintain the prescribed production-cum-stock account in Form XXX, showed low gross profit, or had some pencil entries in the books. In the absence of evidence of inflated purchases, suppressed sales, or stock discrepancies, the authorities lacked a rational basis to discard the accounts or resort to best judgment assessment. Best judgment cannot rest on suspicion alone and must be supported by adequate material affecting the correctness of turnover. The Madras HC therefore held that rejection of accounts and the consequent best judgment assessment were unjustified, and the assessee succeeded. en-us Tue, 20 Jan 1987 00:00:00 +0530 Wed, 04 Sep 2013 15:51:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=155462 Accounts could not be rejected merely because the dealer failed to maintain the prescribed production-cum-stock account in Form XXX, showed low gross profit, or had some pencil entries in the books. In the absence of evidence of inflated purchases, suppressed sales, or stock discrepancies, the authorities lacked a rational basis to discard the accounts or resort to best judgment assessment. Best judgment cannot rest on suspicion alone and must be supported by adequate material affecting the correctness of turnover. The Madras HC therefore held that rejection of accounts and the consequent best judgment assessment were unjustified, and the assessee succeeded. Case-Laws VAT and Sales Tax Tue, 20 Jan 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=155462