HOTEL SURYA Vs. STATE OF KERALA

JUDGEMENT

(1.) Assessment completed against the revision petitioner under the Kerala General Sales Tax Act ('KGST Act', for short) with respect to the year 2011-12 was under challenge in an appeal filed before the Deputy Commissioner (Appeals)-II, Kozhikode. The dispute was mainly relating to additions made on the gross profit, based on the conceded turnover. The Assessing Authority, by rejecting the conceded gross profit at the rate of 31.92%, assessed gross profit at the rate of 65%. The First Appellate Authority reduced the same to 50%. Being not satisfied, the revision petitioner took up the matter before the Appellate Tribunal in a second appeal. The Tribunal had dismissed the second appeal by observing that, there is no reason to accept the contention that the gross profit adopted by the authorities below, at 50%, is excessive. It is aggrieved by the order of the Tribunal that the revision petitioner is before this Court.

(2.) Heard; learned counsel for the revision petitioner and learned Special Government Pleader (Taxes) appearing for the respondent.

(3.) Specific contention raised by the revision petitioner is that, the Books of Accounts with respect to the relevant year was produced before the Assessing Authority at Kuthuparamba (CTO-Kuthuparamba). Therefore it was contended that, the observation that there occurred failure on the part of the revision petitioner in producing the Books of Accounts, is not true and correct. Further contention raised is that, when the assessee had submitted statutory 'Certificate of Audit' and statements in Form Nos. 50A and 50B, through a qualified Auditor, it was not justified in rejecting the claim, merely by assailing the reason that the Books of Accounts were not produced.