9911796707
TMI Blog1997 (5) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... uring inspection the first respondent has proposed to initiate proceedings under section 45-A of the Act. Accordingly a notice was issued by the first respondent on July 19, 1991 to which the petitioner has filed exhibit P3 objection. After considering the said objection the first respondent passed exhibit P2 order levying penalty of Rs. 7,054 for the suspected evasion of tax and Rs. 250 for non-maintenance of correct and true accounts for the year 1990-1991. As against the said order the petitioner filed a revision petition before the Deputy Commissioner of Agricultural Incometax and Sales Tax, Kottayam, who by exhibit P4 order reduced the penalty in so far as it relates to suspected evasion of tax to Rs. 3,700. Being dissatisfied with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax was reduced by the Deputy Commissioner by exhibit P5 order on the ground that the quantum of penalty imposed was found to be excessive in view of the nature of the irregularities noticed. 4.. Counsel for the petitioner firstly challenges the levy of Rs. 250 for nonmaintenance of true and correct account books. In exhibit P3 explanation submitted by the petitioner it is admitted that the kurip book was written only up to September 5, 1990 at the time of inspection on September 10, 1990. There was no explanation at all as to why the book was not written up-to-date. Of course, the case sought to be propounded by the petitioner in this case is that the accountant was absent. Such a case was not projected anywhere before the authorities bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence of any explanation by the dealer for the failure to keep the books up-to-date in this case, the levy of penalty cannot be avoided. In view of the above discussion, I am persuaded to hold that the levy of penalty of Rs. 250 for the non-maintenance of the daily cash book up-to-date is properly in order. 5. Secondly it was argued that the method of fixing the stock variation in hawai chappels by estimation is arbitrary. I do not find any symptoms of arbitrariness in the process of fixation of the production of chappels. What I find is the process adopted by the Intelligence Officer is reasonable. According to the Intelligence Officer, production of chappels out of 25,229 numbers of hawai sheets at the rate of 3.75 pair is 94,609 pairs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
