https://www.taxtmi.com/caselaws?id=307322 The HC held that the penalty under Section 43(2) of the OVAT Act could not be imposed without the Assessing Officer's satisfaction that the tax underassessment was without reasonable cause. Since the assessment order lacked any such finding regarding the wrongful availment of Input Tax Credit, the essential condition for levying the penalty was not met. Consequently, the penalty imposed by the Assessing Officer, upheld by the First Appellate Authority and the Tribunal, was set aside. The petition was allowed, and the penalty demand was quashed. en-us Wed, 07 Dec 2022 00:00:00 +0530 Mon, 11 Aug 2025 14:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=307322 The HC held that the penalty under Section 43(2) of the OVAT Act could not be imposed without the Assessing Officer's satisfaction that the tax underassessment was without reasonable cause. Since the assessment order lacked any such finding regarding the wrongful availment of Input Tax Credit, the essential condition for levying the penalty was not met. Consequently, the penalty imposed by the Assessing Officer, upheld by the First Appellate Authority and the Tribunal, was set aside. The petition was allowed, and the penalty demand was quashed. Case-Laws VAT / Sales Tax Wed, 07 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=307322