1976 (9) TMI 71

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.... both the appeals, the levy of penalty alone is the subject matter of dispute. 2. In T.A. 40/76 the assessing officer has imposed a penalty of Rs. 136 under S. 16(2) of the Act on his conclusion that M/s. India Radiators Ltd. have not included the value of goods transferred to their sister concern M/s. Western Thomson [India] Ltd. in their monthly reports and yearly statements, though they had made entries regarding the transactions in their accounts. In T.A. 84/76 the assessing officer found that M/s Western Thomson (India) Ltd. have not shown the turnover of Rs. 41,606.84 made over to their sister concern viz. India Radiators Ltd. in their monthly reports and annual statement though they had made entries in their accounts for the asses....

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.... for consideration in both the appeals is whether there was willful suppression of sales turnover, warranting levy of penalty on both the appellants? 5. Point:- The fact that the transfer of goods by one company to its sister company have been recorded in the books of account of the assesses and that the assessing authority examined those records of the assesses at the time of original assessment and were not assessed after due consideration, cannot be disputed, It is only by way of revised assessment under S. 16(2) that the said transfer transactions have been taken as sales. So far as the revised levy of tax on the above turnovers are concerned, the appellants are disputing only the levy of penalty. Therefore, we are concerned only wit....

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.... could be included in the turnover. Though it was upheld that such turnover was liable to tax after 31st Aug., 64, the Revenue did not press their contention in respect of the penalty having regard to the decision of the Supreme Court in State of Madras vs. S.G. Jayaraj Nadar Sons of wherein it has been held that where account books are accepted along with other records and where certain items which are not included in the turnover are discovered from the dealer's turnover the assessment cannot be regarded as based on best judgement and penalty cannot be levied in respect of such items. In view of the above judicial decisions, we have to find whether the appellants who had felt a doubt about the eligibility, are not entitled to succeed on t....