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2002 (11) TMI 764 - HC - VAT and Sales Tax
Issues:
1. Inclusion of turnover and additions made by assessing authority. 2. Addition of amount towards sales suppression. Analysis: Issue 1: Inclusion of turnover and additions made by assessing authority The petitioner, engaged in cashew business, challenged the assessment under the Kerala General Sales Tax Act for the year 1978-79. The main contention was the inclusion of a turnover of Rs. 27,95,463 under raw nut purchase in Kerala and subsequent additions. The petitioner argued that due to monopoly procurement of local raw cashewnuts by the Kerala State, they had to purchase nuts from Tamil Nadu for processing. The petitioner provided trading and profit accounts to support their claim. However, the assessing authority found discrepancies between the accounts and added the turnover to the assessment. The first appellate authority and the Tribunal upheld the additions, citing lack of material to support the petitioner's case. The High Court, based on the factual findings, declined to interfere with the decisions of the lower authorities, as there was no merit to challenge the inclusion of turnover and additions made by the assessing authority. Issue 2: Addition of amount towards sales suppression The assessing authority noted discrepancies in the petitioner's accounts regarding the purchase and sale of cashew kernels. The authority observed unaccounted purchase and sale of cashew kernels, leading to the addition of Rs. 42,50,400 towards sales suppression. The petitioner failed to provide evidence to prove consignment sales, which was also noted by the first appellate authority and the Tribunal. The assessing authority's findings regarding unaccounted purchase of raw cashewnuts and sale of cashew kernels were deemed justified by the appellate authorities. The High Court concurred with the lower authorities, stating that the circumstances pointed towards unaccounted transactions. Consequently, the addition of Rs. 42,50,400 towards sales suppression was upheld. The High Court found no illegality in the decisions of the assessing authority and the appellate authorities regarding this issue. In conclusion, the tax revision case was dismissed by the High Court, affirming the decisions of the lower authorities.
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