1994 (6) TMI 208

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....ed that penalty under section 16(2) of the Act can be levied only when it is found that the escape from assessment was due to wilful non-disclosure of assessable turnover by the dealer; that in the case on hand, no doubt the turnover in question was not included in the original returns submitted; but as soon as it was realised by the dealer that the agency turnover in question also ought to have been included in the return filed, for the assessment years 1986-87 and 1987-88 the dealer immediately filed the supplemental return and also paid tax due thereon and this was done before the notice issued for the escaped assessment under section 16 of the Act. Under these circumstances, it is submitted that there is no element of wilful non-disclos....

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....s clear that the appellants, conscious of the penal provision of section 16(2) filed statements disclosing the turnover suppressed and made a show of it, so that they could escape the higher scale of penalty. It was not a return voluntarily filed, though an attempt was made to usher in a statement so as to gain an undue advantage in the matter of penalty leviable under section 16(2) of the Act. Further, it is to be seen that in their letter dated February 6, 1989, addressed to the Deputy Commercial Tax Officer (Enforcement), Madurai, it is stated by the appellants that: 'The business newly commenced was solely looked after by Mr. S. Dhilifan. While so, at the time of check of books of accounts during the month of December, 1988, it was not....