IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN TUESDAY, THE 14TH SEPTEMBER 2010 / 23RD BHADRA 1932 WA.No. 1557 of 2010() -------------------- JUDGEMENT/ORDER IN WPC.24774/2010 Dated 12/08/2010 .......................................... APPELLANT / PETITIONER : -------------------------------------- MR.N.SALIM, BISMI AGENCIES, VELLAYANI JUNCTION, NEMOM, THIRUVANANTHAPURAM. BY ADV. SRI.JOSE JOSEPH RESPONDENTS / RESPONDENTS : ----------------------------------------------- 1. THE ASST.COMMISSIONER,SPECIAL CIRCLE, KVAT, THIRUVANANTAHPURAM- 35. 2. THE COMMISSIONER OF COMMERCIAL TAXES, PUBLIC OFFICE BUILDINGS, VIKAS BHAVAN, THIRUVANANTHAPURAM-695 018. 3. STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, FINANCE DEPARTMENT, SECRETARIAT, THIRUVANANTHAPURAM-695001. R1 TO R3 BY GOVT. PLEADER SRI. MOHAMMED RAFEEQ THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 14/09/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Mn C.N.RAMACHANDRAN NAIR & K.SURENDRA MOHAN, JJ. ------------------------- W.A No.1557 of 2010 -------------------------- Dated this the 14th September, 2010 J U D G M E N T Ramachandran Nair, J. The grievance of the appellant appears to be against the fixation of some gross profit by Commissioner for the purpose of collection of advance tax. Advance tax collection is made based on estimated value for which Commissioner was fixed gross profit. However, it is a settled position that advance tax collection is provisional and actual tax liability has to be determined in the course of assessment. If accounts are believable then assessment has to be made based on the accounts and if accounts are not reliable or genuine, gross profit has to be estimated in the course of assessment. GP normally should be adopted based on market conditions. The officer is free to conduct enquiry in this regard. 2. Learned Single Judge also upheld the appellant's entitlement to have a regular assessment completed after verifying the books of accounts and after W.A No.1557 of 2010 2 giving an opportunity of hearing to the appellant. 3. The prayer in the appeal is only for a direction to have a regular assessment made after verifying the books of accounts and after issuing notice to the appellant. 4. Learned Government Pleader pointed out that notice for assessment is already issued. 5. We therefore dispose of the writ appeal with a direction to the respondents to complete the assessment after giving an opportunity to the appellant to produce the books of accounts after issuing notice and after hearing the objection raised by him. Advance tax paid to be adjusted towards the final assessment. C.N.RAMACHANDRAN NAIR JUDGE K.SURENDRA MOHAN JUDGE ma