9911796707
TMI Blog2003 (6) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... materials gathered in the said inspection with reference to the books of accounts maintained by the assessee, stock variations were found in so many items of foreign liquor and that the assessee had admitted the offence of non-maintaining true and correct accounts by remitting compounding fee. In the assessment order for the assessment year 1992-93, so far as foreign liquor is concerned, the assessing officer had stated that the total suppression worked out to Rs. 2,484 that though the assessee had maintained day to day stock register, shortage had been detected in almost all items, which shows unaccounted sales. It is also stated that the assessing officer also verified the stock records as per the Shop Inspection Report with reference to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vananthapuram, dismissed both the appeals by a common order dated November 21, 2000 (annexure A3). 2.. Shri N. Manojkumar, learned counsel appearing for the revision petitioner, submits that so far as foreign liquor is concerned, it could be purchased locally only from the Beverages Corporation and that it is an item taxable only at the point of first purchases in the State, which was suffered at the hands of the Kerala State Beverages Corporation. Counsel further submitted that the petitioner, being a second seller, is not liable to pay any tax at all during the relevant period. Counsel also submitted that though an inspection was conducted during the assessment years concerned, only shortages were found in respect of different items of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessing officer was that the bar attached hotel is located in a prime locality, and having regard to the volume of business, the turnover returned is low. Counsel submitted that this is a vague allegation, unsupported by any material. He also relied on a decision of this Court in Kaniampuram Brothers v. State of Kerala [1998] 111 STC 363; [1998] 6 KTR 464, wherein it has been held that even after the rejection of books of accounts, there must be some material for estimating the turnover. Counsel, in short, submitted that the addition made on both counts cannot be sustained. Reported in [2003] 131 STC 8 (State of Kerala v. Lovely Thomas). 4.. We also heard the learned Government pleader. He submitted that in the instant case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eign liquor based on the inspection conducted. Excepting the stock variation, no other discrepancies were found. This is a case of shortage simpliciter. In the circumstances, according to us, the decision of this Court in Kuruvila Chacko's case (1991) KLJ (Tax cases) 665 applies and, consequently, the addition made to the turnover of foreign liquor has to be deleted. We notice that this decision has been followed by subsequent division Bench decisions also, viz., Krishnanlal Co. v. State of Kerala [2001] 123 STC 124; (2001) 9 KTR 397 and Polakulath Tourist Home v. State of Kerala [2001] 124 STC 387 (Ker); [2001] 9 KTR 511, which we have already mentioned above. Further, though the correctness of the decision in Kuruvila Chacko's case (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as held by this Court in Kaniampuram Brothers v. State of Kerala [1998] 111 STC 363; (1998) 6 KTR 464, even after the rejection of the books of accounts, in order to make an estimate, there must be some material. In the instant case, no such material in the form of discrepancies in the purchases and sales of cooked foods were found. Consequently, even the addition of 5 per cent sustained by the first appellate authority and confirmed by the Tribunal cannot be sustained. We, accordingly, direct the assessing officer to delete the additions made on the turnover of both foreign liquor and cooked foods. These tax revision cases are allowed as above. Petition allowed. Reported in [2003] 131 STC 8 (State of Kerala v. Lovely Thomas). - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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