TaxTMI 
TaxTMI 
1976 (9) TMI 58
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....ssessing authority imposing penalty of Rs. 2,500 under s. 22A of the Bengal Finance (Sales tax) Act, 1941 as extended to the Union Territory of Delhi at the relevant time. During the course of examination of the books of accounts for the year 1963-64 it was revealed that the dealer had not included in the his returns the sales made at its branch at 61, Western Courts. In response to a show cause n....
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....R. Kidwai vide his impugned orders. 3. In the present appeal it is contended that the provisions of s. 22-A are not attracted in this case. The case of dealer is that he interpreted the law in a particular way and believed that the sales made at Western Courts were not taxable. It was argued that merely putting forward a legal plea in the return or statement of sales does not amount to making a....
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....he assessee can always argue that under the law a particular item is not taxable. In that case the assessee showed in his return a turnover representing sales of Kutti machines, but claimed that this turnover was exempt from tax as Kutti machine was an agricultural implement. In the case in hand the assessee did not show at all in his return the sales made at Western Courts. The facts of the prese....
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....yment of the tax and without there being any clear finding in that respect, could not be sustained. Here in the present case when the legal position of law known to the dealer he should not have failed to show that receipts from Western Courts in his return. This decision also does not help the dealer. 7. In the Delhi Cloth and General Mill's it was held that having received bonafide advice fro....