HOTEL ASHOKA Vs. STATE OF KERALA

JUDGEMENT

(1.) THE revision petitioner is a firm. It is a dealer under the Kerala General Sales Tax Act, 1963. THE respondent is the Revenue. In this revision, we are concerned with the assessment for the year 1988-89. THE order passed by the Sales Tax Appellate Tribunal, Additional Bench, Ernakulam, in T. A. No. 1081 of 1991 dated February 12, 1992, is under challenge in this revision. THE assessing authority rejected the books of account and the returns submitted by the dealer. A best judgment assessment was passed on July 28, 1991. In appeal, the Appellate Assistant Commissioner, Alappuzha, by order dated October 11, 1991, modified the order of assessment to some extent. In second appeal, the Sales Tax Appellate Tribunal, Additional Bench, Ernakulam, by order dated February 12, 1992, dismissed the appeal. THE said order of the Appellate Tribunal is under challenge in this revision.

(2.) WE heard counsel.

(3.) WE find that the accounts and the returns were rejected on very valid grounds. The inspection conducted in the assessee's business place on June 29, 1988 (wrongly stated to be on April 12, 1988) disclosed various discrepancies in the stock of various items and also suppressions. The statutory authorities were justified in rejecting the accounts for the discrepancies noticed in the stock of various items and also for the suppressions found out. The addition of 5 per cent to cooked food and specific additions to many other items are also justified, in view of the various irregularities and suppressions found out. Indeed, the assessee itself compounded the offence by paying Rs. 350. These are relevant factors to be noticed in evaluating the correctness or otherwise of the accounts of the dealer. WE are of the view that the accounts were rejected on proper grounds.