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1971 (9) TMI 156 - SC - VAT and Sales TaxWhether penalty can be levied while making the assessment under sub-section (2) of section 12 of Madras General Sales Tax Act, 1959 merely because an incorrect return has been filed? Held that:- Appeal dismissed. In the present case the High Court found that the turnovers involved in the first and the third items were not determined on the basis of any estimate or best judgment. The quantum of turnovers in respect of both these items were based on the assessee's account books. The true position, therefore, was that certain items which had not been included in the turnover shown in the returns filed by the assessee were discovered from his own account books and the assessing authority included those items in his total turnover. For these reasons the High Court was justified in holding that the assessment of the first and the third items could not be regarded as based on best judgment. The penalty thus could not be levied in respect of those two items.
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