9911796707
TMI Blog1999 (11) TMI 846X X X X Extracts X X X X X X X X Extracts X X X X ..... 26,99,638.10 and Rs. 34,96,789.86. Subsequently when accounts were called for examination by assessing officer, revised returns were filed for the two years, disclosing turnovers of Rs. 42,54,649.68 and Rs. 60,19,665.06 respectively. Penalty proceedings under section 45-A of the Act were initiated for filing incorrect returns. In response to the notice, assessee raised a plea that an inexperienced clerk had misplaced the pattials which were traced out only in January, 1987 and thereafter revised returns were filed on May 12, 1989. This explanation was not found to be satisfactory by the assessing officer who levied penalties of Rs. 1,20,000 and Rs. 1,50,000 respectively. 3.. Revision applications were filed but the revisional authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of penalty by officers and authorities. Clause (d) of sub-section (1) refers to submission of untrue or incorrect return. The quantum of levy can be an amount not exceeding twice the amount of sales tax or other amount evaded or sought to be evaded where it is practicable to quantify the evasion or an amount not exceeding five thousand rupees in any other case. Therefore, where it is practicable to quantify the evasion, the maximum limit is twice the amount of sales tax or other amount evaded or sought to be evaded. Where it is not practicable to quantify the evasion, the maximum limit is Rs. 5,000. Penalty can be imposed where there has been deliberate defiance of any statutory provision or contumacious or dishonest conduct and wilful d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpt to evade tax. Normally in such matters, scope for interference is very limited. But considering the fact that the revised returns were filed before verification and detection of any omission by the assessing officer, it can certainly be said to be a mitigating factor while deciding the quantum of penalty to be levied. Additionally, contrary to what has been observed by the learned single Judge, the transactions were incorporated in the books of account. Period for which legitimate tax payable to Government was withheld is nearly 30 months. The quantum of tax involved is Rs. 1,50,051 for the assessment year 1984-85 and Rs. 1,96,714.95 for the assessment year 1985-86. This being the position, we feel penalty of Rs. 35,000 and Rs. 40,000, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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