Penalty for concealment upheld where stock transfer claim failed and transactions were treated as inter-State sales.

Penalty under Section 15-A(1)(c) was upheld where survey material showed that particulars of out-of-State purchasers were already available in the assessee's records before movement of goods. On that basis, the stock transfer claim was rejected and the transactions were treated as inter-State sales. The authorities further found deliberate concealment and an attempt to present taxable turnover as exempt through Form-F, which supported invocation of penalty for inaccurate disclosure of turnover.

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Issues: Whether penalty under Section 15-A(1)(c) was justified where the assessee claimed stock transfer but the authorities found the transactions to be inter-State sales and held that turnover had been concealed or inaccurately disclosed.

Analysis: The survey material showed that details of out-of-State purchasers were already available in the assessee's records before movement of goods. On that basis, the authorities found that the claim of stock transfer was not acceptable and that the transaction was an inter-State sale. The finding of deliberate concealment and the attempt to show the turnover as exempt through Form-F supported invocation of penalty under Section 15-A(1)(c).

Conclusion: The penalty proceedings were held to be justified and the assessee's challenge failed.

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