2011 (7) TMI 1067

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....p inspection conducted on March 25, 2008, i.e., during the financial year 2007-08, the Inspecting Officers recovered 24 numbers of sale bills. On verifying the sales accounts with the sale bills seized, the Intelligence Officer noticed that the petitioner is accounting gross profit at 28.91 per cent and turnover tax is paid on such turnover, whereas the actual gross profit on the sale by the petitioner as is evident from the seized bills is 77.78 per cent. In view of the suppression of taxable turnover and shortpayment of tax made by the petitioner, penalty proceedings was initiated which led to levy of penalty of Rs. 13,72,770 for the year. When the petitioner filed appeal before the first appellate authority, the appellate authority confi....

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....r cent as against 28.91 per cent recorded by the assessee in the accounts based on which tax was paid. The petitioner has no case that the recovery is not genuine and the bills recovered by the Department from the bar hotel do not relate to the sales. The petitioner does not also deny the contents of the bills, namely, the items billed and the price charged per unit. There is no difficulty to find out the exact gross profit received on every item of liquor sold because liquor is fully purchased by the petitioner from the Government Company and the purchase price is undisputed. When the actual margin charged by the petitioner is found to be 77.78 per cent, the Department verified the accounts and found that the petitioner has suppressed two ....