2008 (10) TMI 621

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....ase is whether the levy of penalty under section 12(3)(b) is justified or not. The Tribunal had followed the judgment of this court in Indian Metal and Metallurgical Corporation v. State of Tamil Nadu [1978] 41 STC 165 and held that levy of penalty is valid where a claim of exemption by an assessee is disallowed leading to a best judgment assessment. It was contended by the Tribunal that the asses....

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....mate and not by relying solely on the accounts furnished by the assessee in the prescribed return. On and after April 1, 1996 an Explanation has been added below section 12(3) which requires the turnover relating to the tax assessed on the basis of the accounts of the assessee, to be disregarded, while determining the turnover on which the penalty is to be levied under section 12(3). 8.. The asses....