K G PAPPACHAN Vs. STATE OF KERALA

JUDGEMENT

(1.) THIS Court has taken the view, in appropriate cases, that merely because for the purpose of avoiding prosecution the assessee admits the guilt and shows readiness to compound the situation, the same cannot be a complete stumbling-block or as an edifice for the authorities to rush to the process of estimation.

(2.) THIS is what has happened in these proceedings because the two appellate authorities have resorted to the question of estimation and addition in regard thereto on the assumption that the resort is taken as a closed door affair.

(3.) WE get material with regard to the resort to rejection of accounts and consequent proceedings to resort to estimation from the order of the Assistant Commissioner (Assessment)-II, Special Circle, Mattancherry (annexure I ). Firstly, 4. 525 gms. of, new gold ornaments were in excess and secondly, 264. 210 gms. of silver ornaments were found in excess. The very figure showing the quantity of excess would give us the idea in the context of the returned total turnover of Rs. 11,18,792. 05. Silver, which is normally understood in terms of "kilo" and not of "grams", is also shown to be of 264. 210 gms. of excess.