1978 (8) TMI 195

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....hcha rokar contained no entries except the opening balance for 6th August, 1971, and no entries were found in that book for 7th August, 1971. Apart from this, the stock register was not available on the firm's premises. Relying on these two circumstances, the account books of the assessee were rejected, although no specific defect was found in the accounts. The assessee's explanation was that as no sales had been effected on 6th August, 1971, on account of it being Rakshabandhan day, no entries were made on 6th August, 1971. As regards the non-availability of stock register, the explanation was that it had not been asked for by the surveying officer. The explanation given by the assessee has not been accepted. Counsel urged that no reaso....

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....ver, the fact remains that the accounts of the assessee were not being maintained regularly and, as such, could be rejected on this consideration. Turning now to the assessment of turnover made by the assessing authority, the Sales Tax Officer estimated the net turnover at Rs. 29,00,000. The assessee had in this year returned a net turnover of Rs. 21,57,717. The appellate authority fixed it at Rs. 26,00,000, which was upheld by the revising authority. The appellate authority found that no suppression of turnover was detected in the assessment year 1971-72. Basing itself on the past history, viz., the estimated turnovers for the years 1969-70 and 1970-71, as also the conduct of the assessee in suppressing his turnovers in the years 1972-7....

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....estimated at Rs. 19,25,000. In the year 1970-71, the assessee's returned net turnover was accepted, in revision, which was to the extent of Rs. 17,95,490. Thus, the past records disclosed a higher turnover in the year 1969-70 and a reduced turnover in the year 1970-71. It also showed that no enhancement was made in the year 1970-71. In the present year, there is an addition of nearly Rs. 4,20,000 to the net turnover, which does not have a reasonable nexus with the estimated turnover of the year 1969-70 or the accepted turnover for the year 1970-71. Rejection of account books undoubtedly empowers the assessing authority to estimate the turnover ; but that turnover, however, is a best judgment assessment. The fact that the assessment has to b....