1994 (12) TMI 315

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..... ace of business of the assessee. The Enforcement Wing, on October 13, 1982, made inspection and reassessment was made on an escaped turnover of Rs. 3,11,134 and levied tax of 9 per cent on this entire escaped turnover. Penalty was levied at Rs. 42,003 calculating at 50 per cent of the tax due on the escaped turnover. Aggrieved, the assessee filed an appeal before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner confirmed the order passed by the assessing officer. The assessee filed a further appeal before the Appellate Tribunal. The Appellate Tribunal determined the escaped turnover as Rs. 1,55,567 taxable at 9 per cent. Penalty was fixed at Rs. 7,000 calculating at 50 per cent of the tax due on the actual suppress .....

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..... April 1, 1982. According to the learned counsel for the assessee, since there is no positive evidence to establish that there was actual suppression, levy of penalty under section 12(3) of the Act is not sustainable. In the alternative, he has submitted that the quantum of penalty is excessive. On the other hand, the learned Additional Government Pleader for Taxes, while supporting the order passed by the Tribunal in respect of both the assessment years under consideration submitted that since the assessee suppressed the sales turnover, the department is correct in estimating the sales turnover and levying penalty under section 12(3) of the Act. The sales turnover was determined on the basis of the materials recovered during inspection of .....

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..... s, the Tribunal came to its conclusion that the estimate made by the assessing authorities, is based upon the brought forward entries which do not relate to a particular date. Relief was accordingly granted to the assessee by sustaining the actual suppressed turnovers. In that view of the matter the turnovers determined by the authorities below, were modified and reliefs were granted. On the basis of the modified turnover, penalty was also modified and it was levied to a lesser extent of Rs. 7,000, than what were fixed by the assessing authority. 6.. We consider that the reason given by the Tribunal for reducing the suppressed turnovers as well as the penalty, appears to be an acceptable one. Accordingly, we are not inclined to interfere w .....

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