Penalty for non-disclosure requires deliberate or wilful omission; disclosed turnover defeats levy under sales tax law.

Penalty under section 12(4) of the Tamil Nadu General Sales Tax Act, 1959 cannot be imposed where the disputed turnover was already reflected in the books of account and disclosed to the assessing authority before final assessment, and the omission to include it was neither deliberate nor wilful. In a best judgment assessment under section 12(2), penalty requires proof of the statutory ingredients for concealment or non-disclosure; where the assessee had submitted to assessment on that turnover and the appellate findings showed no intentional suppression, the basis for penalty fails. The article therefore states that penalty was not leviable.

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Issues: Whether penalty under section 12(4) of the Tamil Nadu General Sales Tax Act, 1959 could be imposed when the turnover had been shown in the accounts and furnished to the assessing authority before final assessment, and the omission to include it was found to be neither deliberate nor wilful.

Analysis: The turnover in question was reflected in the books of account and was also disclosed through statements furnished before initiation of final assessment proceedings. The factual findings recorded by the appellate authority showed that the assessee had submitted itself to assessment on that turnover and that the omission was not intentional. In those circumstances, and in the context of a best of judgment assessment under section 12(2), the ingredients necessary for penalty under section 12(4) were not established. The finding that the omission was not wilful also negatived the basis for penalty.

Conclusion: Penalty under section 12(4) was not leviable, and the tax case was dismissed.

Ratio Decidendi: Penalty for non-disclosure cannot be sustained where the turnover was already disclosed in the accounts and before the assessing authority, and no deliberate or wilful omission is proved.

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