1999 (11) TMI 846

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.... and 1985-86. For the two years returned taxable turnovers were Rs. 26,99,638.10 and Rs. 34,96,789.86. Subsequently when accounts were called for examination by assessing officer, revised returns were filed for the two years, disclosing turnovers of Rs. 42,54,649.68 and Rs. 60,19,665.06 respectively. Penalty proceedings under section 45-A of the Act were initiated for filing incorrect returns. In response to the notice, assessee raised a plea that an inexperienced clerk had misplaced the pattials which were traced out only in January, 1987 and thereafter revised returns were filed on May 12, 1989. This explanation was not found to be satisfactory by the assessing officer who levied penalties of Rs. 1,20,000 and Rs. 1,50,000 respectively. ....

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....der the heading "Offences and penalties", deals with imposition of penalty by officers and authorities. Clause (d) of sub-section (1) refers to submission of untrue or incorrect return. The quantum of levy can be an amount not exceeding twice the amount of sales tax or other amount evaded or sought to be evaded where it is practicable to quantify the evasion or an amount not exceeding five thousand rupees in any other case. Therefore, where it is practicable to quantify the evasion, the maximum limit is twice the amount of sales tax or other amount evaded or sought to be evaded. Where it is not practicable to quantify the evasion, the maximum limit is Rs. 5,000. Penalty can be imposed where there has been deliberate defiance of any statutor....