2003 (8) TMI 524

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..... oposed to reject the books of account and to estimate the turnover on best judgment basis. In reply to the pre-assessment notice, the assessee gave explanation with regard to the purchase bills obtained from the check-post. The assessing authority had accepted the explanation with regard to three bills. He, however, did not accept the explanation with regard to two bills, the total of which came to Rs. 9,610.21. This is with regard to bills 633 dated July 20, 1994 and 53 dated July 13, 1994. The assessing authority had estimated the turnover by making an addition of six times the suppression so found. This was confirmed in appeal, both by the Additional Appellate Assistant Commissioner of Sales Tax as well as by the Sales Tax Appellate Trib .....

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..... ase for interference by this court in this case. We have considered the rival submissions. Admittedly, the only reason for rejecting the books of account and estimating the turnover is the checkpost declarations. As already noted five purchase bills were obtained from the check-post and the assessee had satisfactorily explained three of the said bills. The assessing authority did not accept the explanation with regard to two bills, totalling to Rs. 9,610,21. This court considered an identical question in the judgment dated February 11, 2003Reported at [2008] 11 VST 149 (Ker) [C.O. Varghese v. State of Kerala]. in T.R.C. No. 65 of 2003. The relevant portion reads as follows: "But so far as the addition made on the basis of the check- .....

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..... he Tribunal should have sustained addition of only the sale value of the purchases covered by the five check-post declarations. In the above circumstances in modification of the order of the Tribunal, we direct the assessing authority to modify the assessment for the year 1992-93 by adding only the sale value of the purchases covered by the five check-post declarations." The above decision squarely applies to the facts of the present case. In the circumstances, in modification of the orders passed by the authorities below, we direct the assessing authority to modify the assessment by taking the actual purchase suppression of Rs. 9,610.21 and make an addition of a reasonable gross profit for arriving at the sale value. The rate of tax .....

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