IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE V.K.MOHANAN WEDNESDAY, THE 9TH DECEMBER 2009 / 18TH AGRAHAYANA 1931 ITA.No. 1421 of 2009() ---------------------- ITA.1160/2005 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT -------------------- THE COMMISSIONER OF INCOME TAX, COCHIN. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): --------------- M/S.ENKAYS, C/O. SHRI.N.K.SIVADASAN, PARTNER, CHEERIPARAMBIL, VATTUKUNNU, MULANTHURUTHY, COCHIN. ADV. M/S..T.M.SREEDHARAN V.P.NARAYANAN & C.K.SHERIN THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 09/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N. RAMACHANDRAN NAIR & V.K.MOHANAN, JJ. ---------------------------------------- I.T.A. No.1421 OF 2009 ---------------------------------------- Dated, the 9th day of December, 2009 JUDGMENT Ramachandran Nair, J. The question raised in the Departmental appeal is whether the Tribunal was justified in cancelling the addition of Rs.12,91,840/- made in the assessment being the value of sales suppression detected by the sales tax authorities. 2. We have heard the counsel appearing for both sides. 3. On going through the orders, we find that the Department treated the estimated turnover assessed by sales Tax Authorities as undisclosed income of the assessee. It is the finding of the Tribunal that this turnover cannot be treated as undisclosed income of the assessee. We are of the view that at the maximum net income could be estimated from the turnover. ITA 1421/09 -:2:- Considering the total turnover income involved, that is, Rs.12 lakhs, the assessee may not have tax liability on the net income. According to the assessee, the business led to loss and the assessee has therefore abandoned the business. We do not find anything to interfere with the order of the Tribunal cancelling the addition. Consequently, the appeal is dismissed. C.N.RAMACHANDRAN NAIR JUDGE V.K.MOHANAN, JUDGE kvm/- ITA 1421/09 -:3:- V.K.MOHANAN, J. O.P.No. JUDGMENT Dated:..