2014 (2) TMI 488

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....ity as well as the Appellate Assistant Commissioner imposing penalty under Section 16(2) of the Tamil Nadu General Sales Tax Act 1959, has held that the assessee is liable for penalty to the minimum levy of 50%. It is against the said impugned order of the Tribunal, the assessee has filed the present revision which was admitted on the following questions of law "1.Whether on the facts and in the circumstances of the case, the Tribunal was right in levying penalty on the petitioner even after holding that the petitioner has reported the turnover and claimed exemption is correct in law ? 2. Whether on the facts and in the circumstances of the case, the Tribunal was right in levying penalty on the ground "but for the investigation this s....

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...., the assessing authority may, if it is satisfied that the escape from the assessment is due to wilful non-disclosure of assessable turnover by the dealer, direct the dealer, to pay, in addition to the tax assessed under clause (a) of sub-section (1), by way of penalty a sum which shall be- (a) fifty per cent of the tax due on the turnover that was willfully not disclosed if the tax due on such turnover is not more than ten per cent of the tax paid as per the return; (b)one hundred per cent of the tax due on the turnover that was wilfully not disclosed if the tax due on such turnover is more than ten per cent but not more than fifty per cent of the tax paid as per the return; (c)one hundred and fifty per cent of the tax due on the ....

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....onclusion that since the assessee had claimed excessive deductions knowing that they are incorrect; it amounted to concealment of income. It was tried to be argued that the falsehood in accounts can take either of the two forms; (i)an item of receipt may be suppressed fraudulently; (ii)an item of expenditure may be falsely (or in an exaggerated amount) claimed, and both types attempt to reduce the taxable income and, therefore, both types amount to concealment of particulars of one's income and therefore, both types amount to concealment of particulars of one's income as well as furnishing of inaccurate particulars of income. We do not agree, as the assessee had furnished all the details of its expenditure as well as income in its r....