CREAM PACKS (P)LTD. Vs. STATE OF KERALA

JUDGEMENT

(1.) The questions of law framed by the Division Bench at the time of admission are as follows:

(2.) The issue arises insofar as the imposition of penalty of Rs. 13,764/- for non-maintenance of true and complete accounts. The Intelligence Officer conducted an inspection in the business premises of the assessee. Verification of the books of accounts revealed no variation of stock. However, the sales report of April 2006 and May 2006 revealed sales far in excess of that disclosed in the monthly returns. The sales difference come to Rs. 1,29,909/-. The assessee on being issued with notice produced F Forms for stock transfer of Rs. 74,850/-. The said portion was deducted and on the balance difference there was a penalty imposed at twice the amount of tax sought to be evaded.

(3.) The assessee in first appeal won and the revenue filed an appeal before the Tribunal in which the penalty order was restored, against which the assessee is before us with the aforesaid revision.