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TMI Blog2009 (2) TMI 797X X X X Extracts X X X X X X X X Extracts X X X X ..... xable turnover. Petitioner has paid the tax on the basis of the taxable turnover furnished in the said return. There was a dispute whether rubber purchased by the petitioner was liable to be included in he purchase turnover. When the earlier demand was made, that was disputed and a Full Bench of this court in Madras Rubber Factory Ltd. v. State of Kerala ((1989) 74 STC 56) held that it is not liable to be included in the purchase turnover. Therefore, at the time of filing the return his declaration was correct and the tax as per the return was paid. But, subsequently the Hon'ble Supreme Court by judgment dated 19.12.1997 in State of Kerala v. Madras Rubber Factory Ltd. ((1998) 108 SC 583) reversed the judgment of this court. Consequent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per law applicable on the date of filing the return, subsequent introduction of Clause (iiib) in Section 28 of the Income Tax Act is not applicable as assessee has not committed fault. Even if a retrospective liability was made, that cannot be applicable. It was held by the Supreme Court as follows: "The decision of the Calcutta High Court in Modern Fibotex India Ltd.'s case ((1995 212 ITR 496), squarely covers the issue involved in the present appeal. Then we have t see the law on the date of filing of the return. To attract penal provisions there has to be some element of lack of bona fides unless the law specifically provides otherwise. The case before us does not represent even a bona fide mistake. In fact it is not a case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Bench of this court in Pannalal Binjraj v. Union of India ((1957) 31 ITR 565 are apt (page 597): "A humane and considerate administration of the relevant provisions of the Income-tax Act would go a long way in allaying the apprehensions of the assessee and if that is done in the true spirit, no assessee will be in a position to charge the Revenue with administering the provisions of the Act with `an evil eye and unequal hand'." Learned Government Pleader submitted that at the time of filing the return, there was Section 23(3A) which is now re-numbered as section 23(3B). But, that sub-section is only regarding the liability to pay interest for the period when there was stay of demand obtained by the assessee. Here, asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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