Bona fide revised disclosure before assessment defeats penalty for non-disclosure of taxable turnover.

Penalty for non-disclosure of taxable turnover was not exigible where the assessee filed a revised statement before completion of assessment and the omission was found to be bona fide. Although failure to disclose turnover in the monthly return could ordinarily attract penalty under the relevant sales tax provisions, the later disclosure before finalisation of assessment and the accepted explanation that the omission arose from uncertainty about the transaction's nature meant deliberate suppression was not established. The cancellation of penalty was therefore left undisturbed.

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Issues: Whether penalty was exigible for non-disclosure of taxable turnover in the monthly return where the assessee filed a revised statement before completion of assessment and claimed bona fide reasons for the omission.

Analysis: The assessee had not disclosed the taxable turnover in the monthly return, which ordinarily attracted penalty under section 9(2-A) of the Central Sales Tax Act, 1956 read with section 12(5) of the Tamil Nadu General Sales Tax Act, 1959. However, the turnover was subsequently disclosed by a statement filed before completion of the assessment. The explanation accepted by the Tribunal showed that the omission arose from uncertainty regarding the true nature of the transaction and was not a deliberate suppression. In those circumstances, and in view of the filing of the revised statement before assessment was finalised, the statutory basis for imposing penalty was not made out.

Conclusion: Penalty was not exigible and the deletion of penalty was .

Final Conclusion: The revision failed, and the cancellation of penalty was left undisturbed.

Ratio Decidendi: Where the assessee files a revised disclosure before completion of assessment and the omission to disclose turnover is found to be bona fide, penalty for non-disclosure is not exigible.

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