Concealment of turnover penalty upheld, but reduced to the minimum after survey slips showed unrecorded sales entries.

Loose purchase slips seized during survey revealed entries for deshi ghee and milk powder not recorded in the books of account, establishing specific concealment of turnover. On that factual basis, penalty under section 15A(1)(c) of the U.P. Trade Tax Act, 1948 was upheld. On quantum, the Court considered that the business was in its first year, the concealment was confined to a limited period, and the Tribunal had reduced the penalty to 100 per cent without stating any basis. The minimum penalty of 50 per cent of the concealed turnover was therefore held to be reasonable, and the penalty was reduced accordingly.

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Issues: Whether penalty for concealment of turnover under section 15A(1)(c) of the U.P. Trade Tax Act, 1948 was justified, and if so, what should be the appropriate quantum of penalty.

Analysis: Loose purchase slips seized during survey disclosed entries relating to production of deshi ghee and milk powder not reflected in the books of account, establishing specific concealment. The levy of penalty under section 15A(1)(c) was therefore upheld. On quantum, the Court noted that the case involved the first year of business, the concealment was found only for a limited period, and the Tribunal had reduced the penalty to 100 per cent without disclosing any basis. In these circumstances, the minimum penalty at 50 per cent of the concealed turnover was found to be reasonable.

Conclusion: Penalty under section 15A(1)(c) was upheld, but it was further reduced to 50 per cent of the concealed turnover.

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