1976 (2) TMI 147 - HC - VAT and Sales Tax

Summary

Issues involved: Assessment revision, penalty under section 16(2), wilful non-disclosure of turnover.

Assessment Revision: The High Court of Madras, in the case involving the revising of assessments of the dealer under section 16, addressed the issue of penalty imposed under section 16(2) by the assessing officer. The Tribunal set aside the penalty order in one case and reduced the escaped turnover in another case due to the lack of a specific finding of wilful non-disclosure of turnover as required by section 16(2) of the Act.

Penalty under Section 16(2): The Court noted that the assessing officer did make a finding of wilful non-disclosure of taxable turnover, as evidenced by the use of the term "suppression" in the assessment order. The term "suppression" indicated a deliberate act, contrary to a mere omission. The Court emphasized that the use of "suppression" clearly demonstrated the wilful nature of the non-disclosure, and the Tribunal erred in setting aside the penalty solely based on the absence of explicit wording regarding wilful non-disclosure.

Conclusion: Consequently, the Court allowed the tax revision cases, setting aside the Tribunal's decision on the penalty issue. The revenue was awarded costs, and counsel fees were specified.