1996 (3) TMI 477

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....y an order dated February 15, 1989 the Sales Tax Officer (Reserve), IV Circle, Kozhikode, for the assessment year 1987-88 assessed the respondent-assessee to sales tax on taxable turnover of Rs. 19,99,920. This was under the following circumstances. The assessee deals in jewellery business and had filed total turnover of Rs. 1,79,605.20 and taxable turnover of Rs. 1,58,669.30, claiming exemption f....

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.... regard thereto there was no objection, leaving no alternative to the officer other than to pass the order as stated above. The first appeal before the Appellate Assistant Commissioner, Agricultural Income-tax and Sales Tax, Kozhikode, considered the situation and proceeding on the basis that in jewellery cases the turnover can be estimated at 4 to 6 times of the running stock, the appellate autho....

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....rnaments. It was submitted that there was only one inspection during the year therein and this was what was detected. It was submitted by placing reliance on the decision that it is difficult to give a long rope to the assessing officer to enter into an estimate which would be wild, arbitrary and capricious. It was submitted that estimate has a basis of reasonableness with reference to the detecte....

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....000 gms. Actual sales is only 564.900 gms." This was approximately valued at Rs. 43,000. On facts the Tribunal considered that wilful suppression cannot be attributed and could be also considered to be an accidental omission. The Tribunal also observed that there was only shop inspection and in regard thereto 11.350 gms. as regards new gold ornaments, stock difference could be located. On....