2016 (7) TMI 879

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....lty was sustained, addition of gross profit at 80% was modified and reduced to 50% on the purchase price. In the further appeal filed by the assessee before the Tribunal, the Tribunal passed Annexure C order dismissing the appeal. It is aggrieved by these orders, this revision has been filed. 2. We heard the learned Senior Counsel appearing for the revision petitioner and the learned Government Pleader appearing for the respondent. 3. The assessee conducts a bar attached hotel at Iritty in Kannur District. The place of business was inspected by the Intelligence Officer, Thalassery on 19.08.2009. On inspection, the physical stock of goods found on actual counting and measurements were recorded. The accounts and other documents were cal....

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....have no relevance. As we have already stated, the reported gross profit was 41.32%. But, the verification of the recovered bills disclosed that the average rate of gross profit was 80%. On that finding, all that the Intelligence Officer has done is that he estimated the turnover by adding 80% of the purchase price to the declared purchase price of the goods sold during the assessment year. Thereafter, the sales turnover reported in the monthly returns was deducted and on the differential turnover, tax due was quantified. Accordingly, double the amount of turnover tax was imposed as penalty under Section 45A of the Act. This exercise cannot be said to be an usurpation of the power of estimation of turnover, which is within the purview of the....

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.... of a learned Division Bench of this Court in Classic Marbles v. State of Kerala (2008) 16 KTR 397 (Ker). 7. Having considered the submissions made on behalf of the respondent Revenue, we are of the view that though the basis of the estimation of the gross profit is the profit as disclosed in the sale bills, when this proposal was conveyed to the assessee in the show cause notice and thereafter, the assessee had the opportunity to produce his books of accounts, including the sale bills. Despite the availability of such opportunities at no stage of the proceedings, the assesssee produced the documents or the sale bills. 8. On the other hand, the learned senior Counsel made an attempt to introduce a new case by making reference to a cer....