Single penalty for concealment in reassessment; section 19(1) cannot support an additional penalty for the same false return.

Reassessment under section 19(1) of the Madhya Pradesh General Sales Tax Act, 1958 can carry a penalty where the turnover was deliberately concealed or a false return was filed, but the penalty is traceable to the concealment liability recognised by section 43(1). The statutory scheme does not allow two separate penalties for the same default merely because reassessment proceedings are also in progress. Where penalty is imposed at reassessment on concealment-related facts, section 19(1) operates only within its own maximum limit and does not authorise an additional distinct penalty under section 43(1) for the same conduct.

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Issues: Whether, in reassessment proceedings under section 19(1) of the Madhya Pradesh General Sales Tax Act, 1958, a separate penalty under section 43(1) can also be imposed where the turnover was deliberately concealed or a false return was filed.

Analysis: Section 19(1) empowers reassessment and authorises a penalty at the time of reassessment, but it does not itself create the acts or omissions that attract penalty. Those grounds are supplied by other provisions, including section 43(1), which specifically deals with deliberate concealment of turnover and false returns. The Court held that when reassessment is made on such facts, the penalty imposed under section 19(1) is referable to the liability arising under section 43(1), subject to the maximum limit fixed by section 19(1). The statutory scheme does not permit the Commissioner to impose two distinct penalties for the same concealment merely because reassessment proceedings are also pending.

Conclusion: No separate penalty under section 43(1) can be imposed in reassessment proceedings if penalty has already been imposed under section 19(1) for the same concealment or false return.

Ratio Decidendi: Where reassessment penalty is imposed under section 19(1) on facts constituting concealment or false return, the statute permits only one penalty for that default, and section 19(1) cannot be used to impose an additional separate penalty under section 43(1).

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