Penalty for concealed turnover was unwarranted where a voluntary revised return disclosed additional sales before assessment finalisation.

Penalty under section 43(1) of the M.P. General Sales Tax Act was found unjustified because the assessee had not concealed turnover or furnished a false return with dishonest intention. A revised return disclosing the additional turnover was filed voluntarily before assessment was finalised, and the factual finding was supported by the record rather than surmise. On those facts, the reference was answered in favour of the assessee and against the department.

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Issues: Whether penalty under section 43(1) of the M.P. General Sales Tax Act, 1958 was justified on the facts and in the circumstances of the case.

Analysis: The Board's finding that the assessee had neither concealed turnover nor furnished a false return with dishonest intention was based on the material on record. The revised return disclosing the additional turnover had been filed voluntarily before finalisation of the assessment. The finding was not shown to be based on no evidence or on surmises.

Conclusion: Penalty under section 43(1) of the M.P. General Sales Tax Act, 1958 was not justified, and the answer to the reference was in favour of the assessee and against the department.

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