2013 (2) TMI 660

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.... J.-Since the issue raised in all these writ petitions is one and the same, they are being disposed of by this common order. The petitioner in all these cases is M/s. Gokul Institute of Technology and Sciences and Gokul College of Pharmacy, Piridi (v), Bobbili (M), Vizianagaram District. For imparting education in engineering and pharmacy courses, the petitioner employs many professors, academicians, other administrative staff. The Andhra Pradesh State Legislature enacted the Andhra Pradesh Tax on Professions, Trades, Callings and Employments Act, 1987 (for short, "the Act") for the levy and collection of tax on professions, trades, callings and employments. Under section 5 of the Act, every employer is under an obligation to deduct f....

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....best judgment assessment can be made by the assessing authority under section 8(1) of the Act, in a situation where a return submitted by the assessee is found to be incorrect and incomplete or where an assessee registered or unregistered has not filed returns ; that the penalty under section 8(5) of the Act can be levied only where assessments are made under section 8(1) of the Act ; that the petitioner was neither registered nor had filed returns and it was assessed under section 8(3) of the Act ; therefore levy of penalty under section 8(5) of the Act is without jurisdiction ; consequently the impugned orders levying penalty on the petitioner by the first respondent are liable to be quashed. Heard Sri S.R.R. Viswanath, learned counsel....

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....on-disclosure of information or attempt to evade the tax by the assessee, the assessing authority may also direct to pay in addition to the tax assessed, a penalty which shall not be less than one and half times the tax so assessed but which shall not exceed three times the tax so assessed : Provided that no penalty under this sub-section shall be imposed unless the assessee affected has had a reasonable opportunity of showing cause against the imposition of such penalty." A reading of the above section indicates that a penalty under section 8(5) of the Act can be levied by an assessing authority only if in making an assessment under sub-section (1) of section 8, he is satisfied that escaped assessment was due to wilful non-disclosure....