Bona fide revised returns defeat penalty where disputed charges were later disclosed and tax was paid.

Penalty for filing revised returns was held unwarranted where the assessee had, on a bona fide view, excluded transport charges and agency commission from turnover as not forming part of sale price. Once the departmental position was clarified, the assessee filed revised returns including those amounts and paid tax. The record did not show mala fide conduct, deliberate concealment, or a false return, so penalty under section 17(3) of the M.P. General Sales Tax Act, 1958 was set aside.

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Issues: Whether penalty under section 17(3) of the M.P. General Sales Tax Act, 1958 was justified for filing revised returns after the assessee's claim that transport charges and agency commission were not part of sale price had been rejected.

Analysis: Penalty was found unwarranted because the revised returns were not shown to be mala fide. The assessee had excluded the disputed charges on the bona fide view that they were not includible in turnover, and once the departmental view was made clear, the assessee filed revised returns including those amounts and paid tax. The circumstances did not indicate deliberate concealment or a false return, and the case was distinguishable from the precedent relied upon by the revenue.

Conclusion: Penalty under section 17(3) was not sustainable and was set aside in favour of the assessee.

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