TMI Blog1978 (10) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... General Sales Tax Act, 1958, referring for our answer the following questions of law: "(1) Whether, in the facts and circumstances of the case, the Tribunal was justified in holding that within the meaning of section 43(1) of the M.P. General Sales Tax Act, 1958, the assessee had deliberately furnished a false return by claiming a deduction for supplies of coal to electricity undertakings to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om tax under section 2(j)(a) of the C.P. and Berar Sales Tax Act, 1947. The M.P. General Sales Tax Act, 1958, came into force from 1st April, 1959. There is no such exemption provided in the Madhya Pradesh Act. The penalty of Rs. 8,000 was imposed on the assessee on the ground that it filed false returns, in that it falsely claimed exemption in respect of sales to electrical undertakings amounti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtakings made by it in the returns was not tenable, is not justified. We are not inclined to go into this question because it is essentially a question of fact. On the material placed before it, the Tribunal was justified in drawing the conclusion that the assessee knew that it was not entitled to any exemption in respect of sales to electrical undertakings. The point, however, is whether, even in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stainable. A return will be a false return when some statement of fact in the return is falsely made. But when the facts are fully and correctly disclosed, raising of a false legal plea cannot make the return false. The assessing authority can, in such cases, easily assess the correct amount of tax on the facts disclosed by the assessee after negativing the untenable legal plea. In Agricultural Im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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