9911796707
TMI Blog2008 (5) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... egular books of account as required under the provisions of the Kerala General Sales Tax Act, 1963 and the Rules framed thereunder. For the assessment year 2002-03, the assessee had filed its annual returns conceding total and taxable turnover of Rs. 86,90,934.98 and also had conceded the gross profit at 6.5 per cent during the year in question. The assessing authority has rejected the returns so filed by the assessee and thereafter has issued a pre-assessment notice, inter alia, directing the petitioner to show cause why the annual returns filed by the assessee in form No. 9 should not be rejected and the assessment should not be completed by way of best judgment assessment. The proposal made in the pre-assessment notice by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut opposed to the facts, etc. They have lastly requested to accept the conceded turnover." In the reply filed, the assessee had assigned five reasons why the preassessment notice should not be confirmed. They are, that they are maintaining the books of account in accurate manner as provided under the provisions of the KGST Act and the Rules framed thereunder; the entries made in the books of account are true and correct; the gross profit during the assessment year in question is also accurately reflected in the books of account; their accounts have been audited by a statutory auditor and the same has been enclosed along with the annual returns; and in the nature of the business that the assessee is conducting, since there is a heavy compet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the statutory audit report filed by the assessee cannot be accepted and it is also not the case of the assessing authority that the books of account maintained by the dealer cannot be accepted, since they are not maintained in the form required under the provisions of the KGST Act and CST Act. Further, it is not the case of the assessing authority that though the assessee has earned more gross profit, he has not conceded the same or has not declared the same in the annual return filed for the assessment year in question. On mere ipse dixit the assessing authority proceeds to hold that in the line of business the assessee is carrying on, the gross profit must be on a higher side. This reasoning, in our opinion, is arbitrary but also ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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