METALEX AGENCIES Vs. STATE OF KERALA

JUDGEMENT

(1.) This T.R.C. is filed against the order of the Sales Tax Appellate Tribunal, Additional Bench, Ernakulam, in T.A. No. 34 of 1988. The assessee is the petitioner. The assessment year is 1971-72. The assessee is a dealer in hardwares, iron and steel. For the year 1971-72, the assessing authority rejected the accounts and completed the assessment fixing the total and taxable turnover at Rs. 1,56,87,795 and Rs. 90,57,850 as against Rs. 1,40,42,790 and Rs. 74,28,565 respectively. The enhancement was made on the basis of the income-tax assessment order dated March 27, 1995 alleging suppression.

(2.) It appears that on February 6, 1972, a search was conducted by the income-tax department under Section 132 of the Income-tax Act, 1961, in the business premises and in the residential premises of the assessee. Various documents were seized by the income-tax department. The income-tax assessment was also based on the search. The matter was taken before the Appellate Tribunal. The Appellate Tribunal reduced the total turnover, which is seen from annexure B order. It was submitted before the appellate authority that the Tribunal passed orders by which there has been reduction of turnover. But the appellate authority refused to go into that on the ground that the judgment was not produced before the appellate authority. Before the Tribunal, the judgment was produced. The Appellate Tribunal did not give importance to the fact that the reduction was given with regard to the turnover, etc. Further, we find that in the estimation of the turnover on the basis that for the month of April, 1971, the purchase was for Rs. 1,43,598, the turnover was estimated at 10 times the purchase suppression,

(3.) After looking into the entire aspects, we are of the view that the estimation is very high. Further, we are of the view that the Tribunal should consider the order passed by the Income-tax Appellate Tribunal and the turnover fixed should be taken into account in fixing the estimated turnover in the present case.