BHIMA JEWELLERS Vs. STATE OF KERALA

JUDGEMENT

(1.) THESE tax revision cases relate to the assessments made on the petitioner for the years 1987-88 and 1988-89 under the Kerala General Sales Tax Act, 1963 ("the Act" ). The assessments were completed to the best of the assessing authority's judgment, based on an inspection on May 16, 1987 in regard to the assessment year 1987-88 and on September 2, 1988 in relation to the assessment year 1988-89.

(2.) WE shall deal with the assessment for 1987-88 in the first instance. It was alleged that the inspection on May 16, 1987 revealed discrepancy between the stock on hand and the stock as per the accounts, the value of which was determined at. Rs. 49,293. The assessing authority rejected the accounts in consequence and made an addition of 60 per cent of the returned turnover towards omissions and suppressions. That amounted to Rs. 2,80,73,389. On appeal the Deputy Commissioner confirmed the rejection of the accounts, but reduced the addition to 30 per cent of the turnover conceded. The Appellate Tribunal on second appeal felt that the addition was excessive and reduced it to 2 per cent of the turnover conceded. Petitioner contends that this addition is excessive.

(3.) THE appeal before the Deputy Commissioner (Appeals) was dismissed. But the Tribunal in second appeal reduced the addition from six times the average running stock to five times the average running stock, thereby determining the taxable turnover at Rs. 7,65,93,425. THE result of the Tribunal's decision was that there was still an addition of over Rs. 2. 5 crores to the conceded turnover of the assessee. In effect the turnover estimated was 150 per cent of the turnover returned which as mentioned earlier was about Rs. 5. 1 crores.