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2008 (10) TMI 619 - KERALA HIGH COURTWhether the Deputy Commissioner of Sales Tax has jurisdiction under section 35(2A) of the Kerala General Sales Tax Act, hereinafter called the "KGST Act", to order reopening and revision of a best judgment assessment based on the subsequent information that pursuant to raid by Income-tax Department the assessee conceded unaccounted sales and business income based on which revised income-tax assessment was concluded by orders of the Settlement Commission? Held that:- In order to bar jurisdiction of the Deputy Commissioner under section 35(2)(b) read with section 35(2A), the basis for revision adopted by him should be exactly the same decided in appeal and not anything in relation to it. In other words, if the point raised by him was not the issue decided in appeal, the Deputy Commissioner is free to invoke jurisdiction. Once accounts are rejected, the assessing officer is free to assume that the business is viable and profitable. Thereafter he should estimate the income which can keep the business going with reasonable profit and then project turnover based on it. We feel if this principle is followed, subsequent revision of assessment and controversy of this nature could be avoided. We therefore dismiss STRV No. 133 of 2006 filed by the assessee upholding the order of the Tribunal and restoring that of the Deputy Commissioner and allow STRV No. 480 of 2004 by quashing the order of the Tribunal and restoring that of the Deputy Commissioner issued under section 35(1) of the KGST Act.
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