1997 (2) TMI 502

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....ed to hotel in the name and style of Palace En-paradise. There was a surprise inspection at the premises of the hotel by the Intelligence Officer, Squad II on January 13, 1993. Based on the inspection and enquiry by exhibit P1 order the Intelligence Officer imposed a penalty of Rs. 1,61,864 for the year 1992-93 under section 45A(1)(b) of the Act. The petitioners preferred an appeal before the Depu....

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....question of quantum of penalty. The assessing officer has stated that the dealer failed to maintain true and complete accounts of his business for the year 1992-93 with ulterior motive to evade the payment of tax due to Government, and imposed the penalty. He had also given reasons for coming to the conclusion about the ulterior motive of the petitioner. The first revisional authority, viz., the D....

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....ed by the Intelligence Officer is to be a bit excessive. Therefore he found that the penalty of Rs. 81,000 will be sufficient to meet the ends of justice. On a further revision before the Board of Revenue it was found that the revision applicant need pay tax only at the rate of 75 per cent on the value of excess stock detected. In those circumstances it was considered that the shortage can be limi....

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.... for the excess revealing suppression and that the assessee has failed to keep true and complete accounts. The Division Bench judgment will apply to a case where the authorities have levied the penalty without independent evaluation. I am of the view that they have independently considered the reason for imposing the penalty. Once subsection (1) of section 45A of the Act is satisfied the author....