Incomplete return penalty applies where disclosed turnover is filed without proof of tax payment before assessment.

A statement of last purchase turnover filed before completion of assessment was treated as a revised return, but it remained incomplete because the tax due on the disclosed turnover was not accompanied by proof of payment when filed. On that basis, the Tribunal held that penalty was attracted under section 12(5)(iii) for an incorrect or incomplete return, read with section 12(4)(iii). Later payment of tax did not cure the defect in the return for penalty purposes, and the plea of bona fide omission did not displace the statutory consequence. The penalty was therefore restored.

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Issues: Whether the statement of last purchase turnover filed before completion of assessment could be treated as a revised return so as to avoid penalty, and whether the penalty under section 12(5)(iii) for filing an incorrect or incomplete return was sustainable.

Analysis: The statement of purchase details filed at the time of final assessment was treated as a revised return, but it was held to be incomplete because the tax due on the disclosed turnover was not accompanied by proof of payment when the statement was filed. Under section 12(4)(iii) and section 12(5)(iii), penalty is attracted where the return is incorrect or incomplete. The factual matrix showed that the tax was paid later, and the return could not be regarded as complete merely because the turnover was later disclosed before assessment. The bona fide nature of the omission did not displace the statutory consequence where the return remained incomplete in the sense required by the provision.

Conclusion: The penalty under section 12(5)(iii) was rightly restored and no interference was called for.

Ratio Decidendi: A return filed before completion of assessment is incomplete for the purpose of penalty provisions when the disclosed turnover is not accompanied by proof of payment of the tax due thereon.

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