Goods-return deduction must be claimed in the year of sale, not shifted to a later assessment year.

Deduction for the value of goods returned by purchasers under rule 9(b)(i) of the Kerala General Sales Tax Rules, 1963 had to be allowed in the assessment year relating to the original sale. Goods returned in a subsequent year did not permit the deduction to be shifted to that later assessment year, because the relevant sale had already been assessed in the earlier year. The operative effect was that the deduction could not be claimed in the later year and had to be given effect in the year of sale.

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Issues: Whether the deduction for the value of goods returned by purchasers could be claimed in the assessment year in which the goods were returned, or only in the assessment year in which the goods were originally sold.

Analysis: The deduction under rule 9(b)(i) of the Kerala General Sales Tax Rules, 1963 was held to be allowable in the assessment proceedings relating to the year in which the sales took place. Goods returned in a later assessment year could not shift the deduction to that later year, because the relevant sale had already been assessed in the earlier year.

Conclusion: The deduction was not admissible in the later assessment year and had to be given effect to in the assessment year of sale, in favour of the assessee.

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