N K MYEN KANNU Vs. STATE OF KERALA

JUDGEMENT

(1.) HEARD counsel for the parties.

(2.) THIS revision raises two questions for consideration : firstly, whether the Sales Tax Appellate Tribunal was right in holding that the defects as pointed out in the book keeping constitute a ground to justify the rejection of the book version; and secondly, whether the Tribunal was right in sustaining an addition of 5 per cent to the taxable turnover disclosed by the assessee for the year under review.

(3.) ON further appeal, the Tribunal relying on Central Automobiles v. State of Kerala [1975] 35 STC 478 (Ker) and Indo Burma Stationery and Paper Stores v. State of Tamil Nadu [1984] 57 STC 290 (Mad.) held that non-maintenance of the stock register and non-maintenance of the details of the opening and closing stock on taxable and non-taxable goods constituted serious defects warranting rejection of the book version. In both the authorities relied on by the Tribunal, non-maintenance of stock register was found to be the serious defect and a sufficient reason to reject the book version. In the case at hand, the assessee has not only failed to maintain the stock register or closing stock inventories, but he also failed to furnish separate details of opening and closing stock on taxable and non-taxable goods. In our opinion, these defects fully justify the rejection of the book version.