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of <h1>Court upholds penalty for non-disclosure of turnover under Tamil Nadu Sales Tax Act</h1> The High Court reinstated a penalty of Rs. 1,72,334 imposed by the assessing authority for failure to file a return under the Tamil Nadu General Sales Tax ... - Issues:1. Failure to file a return under the Tamil Nadu General Sales Tax Act, 1959 for the assessment year 1972-73.2. Allegations of suppression of sales through coded language and incomplete records.3. Imposition and deletion of penalty by different authorities.Analysis:1. The respondent failed to file a return under the Tamil Nadu General Sales Tax Act for the assessment year 1972-73. Despite multiple opportunities to produce accounts, the respondent did not comply. An assessment was made based on evidence of dealing in watches, with sales amounting to Rs. 7,65,928 during a specific period.2. The assessing authority found evidence of suppression of sales through coded language in the records. Entries like abbreviations were used to conceal the actual transactions. The assessing officer proposed a best judgment assessment and a penalty for the suppression. The appellate authority upheld the penalty due to non-disclosure of turnover in returns and accounts.3. The Tribunal confirmed the best judgment assessment but deleted the penalty imposed by lower authorities. The High Court criticized the Tribunal's decision, stating that the suppression of sales was evident from the coded entries and incomplete records. The Court emphasized that the penalty was justified under the circumstances and reinstated the penalty of Rs. 1,72,334 imposed by the assessing authority.In conclusion, the High Court allowed the petition, setting aside the Tribunal's order and restoring the penalty imposed by the assessing authority. The Court found the penal provisions applicable due to the respondent's non-compliance and suppression of sales. The judgment highlights the importance of accurate record-keeping and compliance with tax laws to avoid penalties.
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