Undisclosed goods and failure to produce accounts justified penalty where survey facts showed likely tax evasion.

Penalty under section 13A(4) of the Trade Tax Act, 1948 was examined on survey facts showing large quantities of goods at an undeclared place, goods being loaded for transport, and failure to produce books of account at the premises. The explanation that the books were locked in an almirah and the proprietor had taken the keys was treated as unreliable. The authorities relied on the survey report, the statement recorded during survey, the absence of verifiable purchase entries, and the surrounding circumstances to infer that the goods were not duly accounted for. On those facts, the penalty was sustained as a lawful response to suspected evasion.

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Issues: Whether penalty under section 13A(4) of the Trade Tax Act, 1948 was justified on the facts found during survey.

Analysis: The dealer was found with large quantities of goods stored at an undeclared place and goods were also being loaded for transport, while the person present at the premises failed to produce books of account and stated that no accounts were available there. The explanation that the books were locked in an almirah and the proprietor had taken the keys was found unreliable. The authorities did not rely merely on non-production of books, but also on the survey report, the statement recorded during survey, the absence of verifiable purchase entries, and the surrounding facts showing that the goods were not duly accounted for. The obligation to keep and produce books at the place of business was treated as material, and the penalty was viewed as a lawful deterrent against evasion.

Conclusion: The levy of penalty under section 13A(4) was justified and was rightly sustained.

Final Conclusion: The revision failed because the factual findings supported the inference of undisclosed goods and justified the penalty.

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