KOMALA BHAVAN Vs. STATE OF KERALA

JUDGEMENT

(1.) WITH the help of Shri Santhosh Mathew who has appeared for the advocate on record Shri Jaiju Babu, in accordance with the High Court Rules, we have gone through the three orders.

(2.) BEFORE the last fact-finding authority the Kerala Sales Tax Appellate Tribunal, Additional Bench, on reading the judgment we find that the only aspect submitted is that the addition is highly excessive and that too when considering the quantum of addition for the previous year. No other point was argued and before the last fact-finding authority, the proceedings were agitated on the basis of the rejection of the books of accounts and resort to estimation as a consequence as an accepted position, there being no submissions in regard thereto before the last fact-finding authority.

(3.) THE first appellate authority - the Additional Appellate Assistant Commissioner, Agricultural Income-tax and Sales Tax, Kozhikode, observed that there is no serious omission except failure to maintain the accounts up-do-date and the office was compounded on payment of the fine of Rs. 100. THE appellate authority has also observed that on verification of the shop inspection report several discrepancies in stock of vanaspathi, chillies, coriander, maida, atta, sugar, biriyani rice, etc. are found. It is also recorded that a comprehensive verification of the stock is not possible since no record is available regarding the quantity taken for consumption on each occasion. THE authority however found that there are no glaring discrepancies in the stock of vanaspathi, coriander powder, maida and atta because the assessee filed purchase lists before the appellate authority. THE appellate authority found a different position with regard to sugar, chillies and biriyani rice, etc. not being in conformity with the purchases. On the basis of this situation, although the appellate authority held that an addition is certainly warranted, 20 per cent addition was considered to be high and it was reduced to exactly 50 per cent thereof to 10 per cent.