Reasoned turnover estimation based on stock discrepancies was left undisturbed where authorities had already moderated it in favour of the assessee.

Rejection of books of account and estimation of turnover based on stock discrepancies were examined under revision under the Kerala General Sales Tax Act, 1963. The authorities had already considered the surprise inspection findings, the difference between declared turnover and running stock, the absence of any established suppression pattern, and the nature of jewellery , and had moderated the estimate in favour of the assessee. In these circumstances, further interference with the estimation was found unwarranted, and no additional reduction in turnover was justified.

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Issues: Whether the rejection of the books of account and the estimation of turnover based on stock discrepancies called for further reduction in revision under section 41 of the Kerala General Sales Tax Act, 1963.

Analysis: The assessment proceedings arose from surprise inspections that revealed stock differences and a lack of parity between the declared turnover and running stock. The first appellate authority accepted the rejection of the books but reduced the estimation, and the Tribunal further adjusted the estimation in one of the matters so that both assessments stood at two times the running stock. In revision, interference with estimation was found unwarranted because the authorities had already taken into account the stock variation, the single inspection, the absence of any established pattern of suppression, and the nature of jewellery transactions, where discretion had already been exercised in favour of the assessee.

Conclusion: No further reduction in the estimated turnover was justified, and the revision petitions were rightly rejected.

Final Conclusion: The assessments as moderated by the appellate and tribunal authorities were left undisturbed, and the assessee obtained no further relief in revision.

Ratio Decidendi: In revision, the court will not ordinarily interfere with a reasoned estimation of turnover based on proved stock discrepancies where the authorities have already exercised discretion in favour of the assessee and no material shows a further basis for reduction.

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