Penalty for disclosed turnover not leviable where no specific concealment is found in the books of account.

Penalty under Section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959 is not attracted where the disputed turnover is already recorded in the books of account and no specific concealment is found. The Tribunal treated the addition as arising from materials disclosed in the assessee's accounts and applied the principle that the penal provision targets estimated turnover based on concealment, not disclosed turnover. The Madras High Court accepted that these were findings of fact and held that no question of law arose. On those facts, penalty was not leviable and the revision failed.

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Issues: Whether penalty under Section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959 was leviable when the turnover in question was reflected in the books of account and there was no specific concealment.

Analysis: The Tribunal found that the disputed turnover was already available in the assessee's books of account and that the assessment arose from the materials disclosed in those books. On that footing, it applied the principle that the penal provision under Section 12(3)(b) is attracted only where the addition is referable to estimated turnover based on specific concealment, and not where the turnover is part of the recorded accounts. The High Court agreed that these were findings of fact and that they did not give rise to any question of law.

Conclusion: Penalty under Section 12(3)(b) was not leviable on the facts found, and the revision failed.

Ratio Decidendi: Penalty under Section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959 is not attracted where the disputed turnover is already disclosed in the books of account and no specific concealment is found.

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