1996 (6) TMI 310

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... in machinery tools, electrical items, wooden furniture and in regard thereto the assessing authority made addition of 20 per cent to the conceded taxable turnover and also estimated 70 per cent addition to the sales tax turnover of 70 per cent as the corresponding purchase turnover taxable under section 5A. 3.. For the year in question annual return declaring total and taxable turnover of Rs. 22,95,907.86 was filed. The books of accounts of the assessees were called for and examined by the trial authority. The books were found not acceptable because (1) there was difference between turnover as per accounts and return and the difference was not properly explained; (2) there was fall in the turnover when compared to the previous year and ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ring the nature and volume of business, the appellate authority found that additions were very reasonable and in the absence of additional evidence, the appellate authority considered that it is not possible to interfere with the addition proposed by notice under section 17(3) of the Act. 8.. The matter was taken up before the Sales Tax Appellate Tribunal. Reading the judgment of the Tribunal it is found that rejection of the return and accounts for the reasons in regard thereto was justifiable. The contention that low turnover and fall in turnover could not be a reason to reject the accounts, has not been accepted. It was also emphasised before the Tribunal that the manufacturing activity is only in respect of furniture and therefore th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ems may or may not find use in further production. In such cases the absences of manufacturing accounts in the strict sense in rule 32(15) can be taken as a ground for rejection of the books of accounts and estimation of turnover?" With regard to question No. 1 it would be seen that it is a question relating to the exercise of discretion relating to the deduction of percentage. It is not possible to exercise powers under section 41 of the Kerala General Sales Tax Act in regard thereto. 11.. With regard to question No. 2, it would have to be appreciated that the only activity of the assessee was furniture as has been found in regard to which there is no account and the explanation in regard thereto that it is not practicable has been r....