Penalty for attempted tax evasion fails where records are regular and no defect shows concealment.

Penalty under section 51(7)(c) of the Punjab Value Added Tax Act, 2005 cannot be sustained without material showing a proved attempt to evade tax. The Tribunal accepted that the assessee's account books and supporting documents were produced in the normal course of business, no defect was found in the impounded invoice or books, and the Revenue failed to establish evasion. The High Court found no perversity or unreasonableness in those findings and held that, in the absence of evidence of attempted evasion, the penalty was unsustainable. The assessee therefore succeeded on this issue.

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Issues: Whether penalty under section 51(7)(c) of the Punjab Value Added Tax Act, 2005 could be sustained in the absence of a proved attempt to evade tax.

Analysis: The Tribunal found that the account books and related documents produced by the assessee were in the normal course of business, that no defect was pointed out in the impounded invoice or the account books, and that the Revenue failed to establish any attempt to evade payment of tax. The High Court found no perversity or unreasonableness in those findings. In the absence of material showing an attempt at evasion, the levy of penalty could not be supported.

Conclusion: The penalty was not sustainable and the assessee succeeded on this issue.

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