1971 (9) TMI 176

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.....88 in the taxable turnover of the petitioner-firm is justified? (2) Whether on the facts and circumstances of this case, the imposition of the penalty of Rs. 2,000 on the petitioner-firm is justified?" M/s. Tara Chand Hari Ram is a firm registered as a dealer under the Act. It carries on business at Rewari in the district of Gurgaon. The dealer filed quarterly returns for all the four quarters for the year 1964-65 in which the gross turnover was shown at Rs. 2,73,476.12. After claiming deductions permissible under the law, the taxable turnover was worked out at Rs. 2,60,371.10 on which a tax of Rs. 11,286.71 was deposited. The assessing authority was not satisfied with the return and inspected the premises of the assessee. It found many....

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.... best judgment assessment determining the gross turnover at Rs. 4,25,000 as against Rs. 3,73,476.12 as returned by the assessee. Allowing the necessary deductions, the total tax assessed came to Rs. 14,070.36 against the voluntary payment of Rs. 11,286.71. A penalty of Rs. 3,928.37 which was hundred per cent. of the tax involved under section 11(7) of the Act was imposed. New demand in a sum of Rs. 7,856.74 was thus created. The assessee took an appeal to the Deputy Excise and Taxation Commissioner who did not attach much value to the first two irregularities referred to above as he did not consider them to be in any way substantial. In his opinion, 11 transactions of sale mentioned at serial No. 3 above could not be supported and the to....