Ruby Suresh vs State Of Kerala on 16 September, 2009

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

ST.Rev..No. 333 of 2008()



1. RUBY SURESH
                      ...  Petitioner

                        Vs

1. STATE OF KERALA
                       ...       Respondent

                For Petitioner  :.

                For Respondent  : No Appearance

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice V.K.MOHANAN

 Dated :16/09/2009

 O R D E R
                    C.N.RAMACHANDRAN NAIR &
                               V.K.MOHANAN, JJ.
               ....................................................................
                           S.T. Rev. No.333 of 2008
               ....................................................................
              Dated this the 16th day of September, 2009.

                                      JUDGMENT

Ramachandran Nair, J.

Heard counsel for revision petitioner and Government Pleader

appearing for the respondent. Challenge is against addition sustained

by the Tribunal on account of variation of stock noticed during

inspection. Even though counsel for the petitioner contended that stock

variation noticed is very insignificant and the addition sustained is

disproportionate to the minor irregularity, we do not find any ground to

interfere because addition under this count is only Rs.1 lakh. The

petitioner admitted the offence by remitting compounding fee and

therefore, no modification is called for on this account. So far as the

addition on account of undervaluation is concerned, we do not find any

substance in the contention because stock inventory value was much

higher than the sale price disclosed which obviously means

underpricing of the goods in the invoices. In the circumstances, no

interference is called for on the addition sustained by the Tribunal on

2

this count also. However, we find force in the contention of the

assessee that deduction should have been granted for the materials used

in the construction of the house of the petitioner. Even though

Government Pleader pointed out that raw materials have been

purchased by availing concessional rate and the same could not have

been used for own purpose, we feel a reduced amount on estimation

basis can be granted to meet the ends of justice. Consequently we fix

the value of the goods attributable to the construction of house of the

petitioner at Rs.1 lakh and direct the Assessing Officer to reduce the

turnover of Rs.1 lakh from the taxable turnover fixed in assessment and

grant consequential benefit. The S.T. Revision case is allowed to the

above extent.

C.N.RAMACHANDRAN NAIR
Judge

V.K.MOHANAN
Judge
pms