TMI Blog2013 (5) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to suppress an assessable turnover to attract levy of penalty under Section 16(1) of the Act. A mere reassessment of escaped turnover, per se, would not lead to a finding that non-disclosure of assessable turnover was a wilful one. Learned Special Government Pleader could not point out any finding in the order of the Assessing Authority as regards this necessary ingredient on wilful non-disclosure so as to attract the levy of penalty under Section 16(2) of the Act. Even though Section 16(2) of the Act had undergone amendment with effect from 20th May 1993, necessary ingredients of wilful non-disclosure including the penalty, remains as it is. In the circumstances, we have no hesitation in setting aside the order of the Tribunal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tamil Nadu General Sales Tax Act, 1959, was allowed, thereby, the taxable turnover was shown as NIL. On 10.3.1998, there was an inspection in the petitioner's premises. At that time, the petitioner was informed that the sellers from whom the petitioner had purchased the centering sheets were fictitious persons. Consequently, the claim for exemption was not maintainable under the provisions of Section 3-A(2)(b) of the Act. In terms of the materials thus recovered, a notice of revision was issued under Section 16 of the Act. In respect of above said assessment years, the petitioner filed his objection contending that their leasing business for the past years had been carried on in the following manner viz., Customers interested in enteri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The representative of the lessee would thereafter collect the sale price from the assessee. As and when the cheques were honoured and the sale price realised, the acknowledgment of the receipt of the sale price would be handed over to the petitioner by the representative of the lessee. Thus, the assessee submitted that at no point of time, they had interacted with the supplier but the assessee had acted solely on the basis of the representation by the lessees. In the circumstances, the petitioner submitted that they were shocked to receive the notice informing about the non-existence of the suppliers. Immediately thereon, the petitioner communicated with the lessee and sought for proof of the existence of sellers. In the meanwhile, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stion of wilful non-disclosure, the Tribunal, however, relied on the decision of this Court reported in 41 STC 375 THE STATE OF TAMIL NADU v. K.M.AYYANADAR AND CO., and 98 STC 408 DEPUTY COMMISSIONER OF COMMERCIAL TAXES, TRICHY DIVISION, TRICHY v. V.R.KUPPUSAMY GOUNDER SONS as well as the order of the Sales Tax Appellate Tribunal (Main Bench) rendered in T.A. No. 164 and 165 of 1998 and confirmed the penalty to the extent of 50%. Aggrieved by this, present Tax Case Revisions are filed at the instance of the assessee. 5. Learned counsel for the assessee pointed out that the assessee had placed before the Assessing Authority the assessable turnover on the leasing transactions. But at no point of time, they had interacted with the selle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Assessing Authority as well as the Appellate Authority on the ground that but for the inspection the turnover would not have come to light for re-opening of the assessment. Thus, the question of giving any relief on the penalty will not arise. 7. Heard learned counsel for the assessee as well as the learned Special Government Pleader (Taxes). 8. A perusal of the order of the assessment made in respect of above said years point out that except for mere statement that but for the inspection of the Enforcement Wing Officials, the transactions would not have come to light, there is absolutely no discussion as to whether a wrongful claim was an intentional one so as to result in wilful non-disclosure. The assessee has explained ..... X X X X Extracts X X X X X X X X Extracts X X X X
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