https://www.taxtmi.com/caselaws?id=436734 The HC held that the imposition of penalty under Section 43(2) of the OVAT Act is discretionary and must be exercised with due application of mind, rationality, and fairness. The Tribunal erred by treating the penalty as mandatory and imposing it without sufficient independent reasons, rendering the exercise arbitrary and illogical. While the Tribunal's factual findings on suppression of turnover were largely upheld, the penalty imposition lacked proper discretion and was quashed. The HC emphasized strict construction of taxing statutes and that the Assessing Authority must be satisfied before levying penalties. Consequently, the petition challenging the penalty was allowed, and the revision petition was disposed of in favor of the assessee, setting aside the penalty imposed by the Tribunal. en-us Mon, 17 Apr 2023 00:00:00 +0530 Mon, 11 Aug 2025 14:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=436734 The HC held that the imposition of penalty under Section 43(2) of the OVAT Act is discretionary and must be exercised with due application of mind, rationality, and fairness. The Tribunal erred by treating the penalty as mandatory and imposing it without sufficient independent reasons, rendering the exercise arbitrary and illogical. While the Tribunal's factual findings on suppression of turnover were largely upheld, the penalty imposition lacked proper discretion and was quashed. The HC emphasized strict construction of taxing statutes and that the Assessing Authority must be satisfied before levying penalties. Consequently, the petition challenging the penalty was allowed, and the revision petition was disposed of in favor of the assessee, setting aside the penalty imposed by the Tribunal. Case-Laws VAT / Sales Tax Mon, 17 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=436734