Section 25AA(2) in The Kerala Value Added Tax Act, 2003
(2)In case of assessments initiated from the scrutiny of electronically filed returns, annexures and other declarations,-(a)with respect to unaccounted purchases from registered dealers within the State by dealers, notwithstanding anything contained in this Act, input tax credit shall be granted on such purchases, provided the dealer admits such purchases. In such cases, assessment shall be completed by adding 20 percent gross profit on the purchase value.(b)In case of detection of suppression or variation in inter-State purchases, inter-State stock transfers, import and purchases from unregistered dealers, 25 percent gross profit shall be added to such purchases for arriving at the sale value and assessed to tax.(c)If sale suppression is detected, the suppressed turnover shall alone be assessed, without any additions.
