Wilful suppression of turnover supports penalty when return omissions and unexplained delayed disclosures establish deliberate non-reporting.

Wilful suppression of turnover can support penalty where the record establishes deliberate non-disclosure, even if the assessment order does not expressly use that phrase. Omission of turnover from monthly returns, failure to subject it to tax in deemed assessment, detection during inspection, delayed filing of Form-WW, and absence of an explanation may demonstrate intent to suppress. The notes state that penalty under Section 27(3)(b) was sustained because these circumstances established wilful suppression.

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Issues: Whether penalty for wilful suppression of turnover could be sustained despite the assessment order not expressly using the words "wilful suppression".

Analysis: Penalty under Section 27(3)(b) is attracted where the record establishes wilful suppression; verbatim use of that expression in the assessment order is unnecessary. Although the turnover appeared in Form-WW, it was omitted from the monthly returns, was not brought to tax in the deemed assessment, and was detected upon subsequent inspection. The delayed filing of Form-WW and the unexplained omission from monthly returns established an intention to suppress turnover.

Conclusion: The penalty was validly imposed for wilful suppression of turnover. The issue was decided against the assessee.

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