Rejection of defective accounts and 5% business addition upheld on concurrent findings of stock and purchase irregularities.

Rejection of the assessee's accounts was justified where the record showed defects such as unaccounted stock, incorrect treatment of purchases and stock variation during inspection. The assessing authority's consequential addition of 5% to the volume of business was treated as a lenient estimate in light of the turnover and the nature of the defects. Concurrent findings of the appellate authority and Tribunal that the accounts were not true and proper were supported by the material on record, so the High Court found no ground to interfere in revision and upheld the addition.

---

---

Issues: Whether the rejection of the assessee's accounts and the consequential addition of 5% to the volume of business were justified under section 41 of the Kerala General Sales Tax Act, 1963.

Analysis: The assessing authority found several defects in the accounts, including unaccounted stock, incorrect treatment of purchases, and stock variation noticed during inspection. The first appellate authority and the Tribunal accepted that the accounts were not true and proper and that the defects justified rejection of the accounts. The addition of 5% was also treated as a lenient estimate having regard to the turnover and the nature of the defects. The Court found no reason to interfere in revision, particularly as the material on record supported the concurrent findings.

Conclusion: The rejection of the accounts and the addition of 5% were upheld, and the revision failed.

---