S S MUDDANNA Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The order of the Commissioner of Commercial Taxes made in the exercise of his suo motu power of revision under section 22A is challenged herein. By this order, the Commissioner held that the disallowance of the exemption relating to buying agency transaction regarding dhania of the ought to be computed for the two months, and not to be confined to Rs. 74,032.26 being the turnover not properly accounted for at the time of inspection. Since the inspection was held on December 20, 1979, and the accounting year commenced on October 22, 1979, the Commissioner held that the actual discovered escapement should be the basis to estimate the escaped turnover for the period from the date of commencement of the accounting year till the date of the discovery of escapement. For this relied on the decision of the Supreme Court reported in Commissioner of Sales Tax v. H. M. Esufali H. M. Abdulali [1973] 32 STC 77. The appellate authority had, while partly reversing the order of the assessing authority, held :

(2.) Thereafter, regarding penalty, the appellate authority after referring to section 12(4) held that the ingredients to apply section 12(4) were not available in the instant case, because, the assessee had disclosed the turnover and had filed return; hence penalty levied by the assessing authority was set aside.

(3.) The Commissioner in exercise of his suo motu revisional power held that the disallowance of turnover should be estimated for two months for dhania; he further held that to a similar period claim for exemption regarding turnover of jaggery also should be disallowed.