ALUKAS JEWELLERIES Vs. STATE OF KERALA

JUDGEMENT

(1.) Assessee is the revision petitioner. The assessment year is 1992-93. The assessee firm started business in gold in August, 1992. The business place of the assessee was inspected by the Intelligence Squad, Calicut on 28th November 1992 and noticed certain stock difference. The assessee conceded sales turnover of Rs. 1,53,28,289 for the year 1992-93. But the books of accounts were rejected and assessment for the year 1992-93 was completed as per proceedings, dated 30th November 1996 fixing the taxable turnover at Rs. 1,84,89,480 inferring suppression of purchase and sales on the basis of the irregularities noticed at the time of inspection. Accordingly, assessment Order was passed.

(2.) Against the assessment Order, the assessee preferred appeal before the Deputy Commissioner (Appeals) disputing the addition made to the taxable turnover on the basis of alleged suppression of purchase and sales apart from certain other points. The Deputy Commissioner modified the assessment Order directing the Assessing Authority to limit the addition by Rs. 1,50,000 as per Order, dated 10th February, 1997. That order is produced as Annexure B. Consequently, the Assessing Authority passed revised Order, dated 14th March 1997 giving effect to Annexure B Order, copy of which is produced as Annexure C. Thus, suppression of purchase and sales turnover detected at the time of inspection of the business place of the assessee on 28th November 1992 was specifically considered by the Assessing Authority at the time of completion of the original assessment.

(3.) The Deputy Commissioner issued notice under S.35 of the Kerala General Sales Tax Act. In the notice, it is stated thus: "You have admitted an additional income of Rs. 1,50,000 from the unaccounted business for the year 1993-94. Subsequently you have filed an application under S.245C(1) of the Income Tax Act on 19th January 1995 before the settlement commission. In the application you have admitted that there had been suppression of income for the year 1993-94 by not fully accounting the purchases and sales of gold ornaments. You have offered additional income of Rs. 1,50,000/- for the Income Tax assessment year 1993-94, ie., financial year 1992-93. This shows that you have been practising unaccounted purchases and sales during the above period." The assessee objected to this. But the objections were rejected. The assessment was cancelled and it was remanded to the Assessing Authority. The petitioner's appeal to the Tribunal was dismissed.