1970 (8) TMI 74

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..... s a reference under section 44 of the Madhya Pradesh General Sales Tax Act. The applicant filed his return in 1961 for sales during the previous year. In that return he showed a turnover of Rs. 1,16,215 and 11 annas as sales of kutti machines, but he claimed that this turnover was exempt from tax as kutti machine was an agricultural implement. This view was at first accepted by the Board of Revenu .....

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..... es we are satisfied that this is not a case in which penalty could be imposed. In section 43(1) two conditions are given under which a penalty could be imposed, namely,- (i) that the dealer has concealed his turnover or aggregate amount of purchase price in respect of any goods.....or (ii) that a false return has been furnished. Learned counsel for the department has contended that since the appl .....

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..... ard of Revenue is not material. The question is whether merely putting forward a legal plea in the return amounts to making a false return. We are of opinion that such a statement in the return cannot be called a false return. 4.. The result, therefore, is that the question referred must be answered in the negative, i.e., the applicant cannot be said to have furnished a false return, and conseque .....

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