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2009 (7) TMI 1200 - MADRAS HIGH COURTLevy of tax and penalty - Held that:- There is no dispute that the petitioner initially availed of the concessional rate of tax based on form 17 and then subsequently there was a sale covered by section 3(4) of the Act and consequently the levy of two per cent of tax under section 3(4) cannot be availed of and therefore, the challenge made in respect of the said levy cannot also be interfered with. As far as the levy of penalty is concerned only between the period from December 3, 1979 to May 27, 1993, the levy of penalty even in cases of assessment under section 12(1) of the Act can be made. Therefore, since in the present case, the assessment relates to the period 1994-95 and inasmuch as the period was subsequent to May 27, 1993, there is no scope to invoke section 12(3)(b) of the Act as it is not a case of best judgment assessment. Thus levy of penalty imposed in the assessment order dated May 31, 1996, as confirmed by the appellate authorities, deserves to be set aside. Appeal partly allowed.
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