2003 (5) TMI 501 - HC - VAT and Sales Tax

High Court upholds taxable turnover & stock variation additions under Kerala Sales Tax Act for assessment years 1985-88

The High Court dismissed the petitions challenging the estimated taxable turnover and stock variation additions under the Kerala General Sales Tax Act, ... - Issues:Assessment under Kerala General Sales Tax Act, 1963 for three years - Exemption claimed by petitioner - Discrepancies in books of accounts - Turnover estimation - Appeals filed before Appellate Assistant Commissioner and Tribunal - Relief granted by authorities - Petitioner's challenge on estimated taxable turnover and stock variation addition.Analysis:The judgment pertains to a case under the Kerala General Sales Tax Act, 1963, involving the same assessee as the revision petitioner across three assessment years. The assessing authority rejected the books of accounts and returns due to identified discrepancies and irregularities, estimating the turnover for each year. The first appellate authority accepted certain purchase turnovers but estimated taxable turnover differently. The Tribunal confirmed the first appellate authority's decision, leading to the petitioner's challenge.For the assessment years 1985-86 and 1986-87, the first appellate authority and the Tribunal upheld the estimated taxable turnover, considering the purchases of consumable goods for cooked foods. The petitioner contested the arbitrary estimation, arguing for the acceptance of recorded sales turnover and purchases. However, the courts found the estimation justified based on lack of evidence for non-taxable items, upholding the 50% taxable turnover decision.Regarding the assessment year 1987-88, where stock variation in foreign liquor led to additions, the first appellate authority and the Tribunal reduced the initial addition. The courts deemed the reductions appropriate considering the nature of the irregularities found, concluding that no further relief was warranted based on the evidence and assessments by all authorities.In conclusion, the High Court dismissed the petitions, finding no merit in the challenges raised by the petitioner. The judgment affirms the decisions of the appellate authorities regarding the estimated taxable turnover and stock variation additions, emphasizing the reasonableness of the relief granted in each assessment year.