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2016 (11) TMI 1264 - KERALA HIGH COURTJurisdiction of Single Judge Bench to reduce quantum of penalty - tax evasion - whether respondent was able to establish that his conduct was not fraudulent and that his omissions are not so grave so as to attract the maximum penalty, then it would be permissible - Held that: - The fact that the learned single Judge has only reduced the penalty and did not exonerate the respondent from it completely, makes us to conclude that the learned single Judge found the respondent to have acted in culpability and that his action in attempting to prove a contract with Mr.Kumar by creating a document in a stamp paper subsequent to the interception has not been fully proved. It is, therefore, that the levy of penalty was upheld since in normal circumstances, if there was no culpability on the part of the respondent, no penalty ought to have been imposed. We have also examined all the documents on record and the statements given by the respondent and Mr.Kumar before the assessing authority. We see that the case of the respondent that he brought the vehicle to Kerala for executing a work under a contract/agreement with Mr.Kumar appears to be probable. However, his conduct in creating a document, in support of his contention, on a stamp paper that was purchased subsequent to the interception would not give the benefit of exculpation. In such view of the matter, it is, therefore, necessary that he be mulcted with penalty, since he was only enjoying the benefit of doubt based on attendant circumstances. We see that it is in such circumstances the learned single Judge has also upheld the order of penalty, but reduced it to ₹ 1,00,000/- based on the reasons and rationale recorded in the judgment, which, we are of the view, are totally justifiable and with sufficient reason and cause. Appeal dismissed - decided against the revenue.
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