BALAJI STEELS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessee is the petitioner herein. THE assessee is a dealer in steel furniture and almirahs. THE assessee reported a total and taxable turnover of Rs. 2, 32, 600 and Rs. 2, 32, 600 respectively in the return submitted for the years 1989-90. THEre was an inspection conducted by the Enforcement Wing on August 4, 1989 , and the verification of the records received from the check-post resulted in detection of two sale bills with the same number as shown below :

(2.) THE learned counsel appearing for the assessee submitted that on the basis of one bill, it would not be justifiable on the part of the assessing authorities to estimate the sale value for another 42 bills. In the absence of any materials on the side of the assessee to show the actual sale turnover, and proper explanation with regard to bill No. 43, we are unable to interfere with the estimation done by the authorities below in the matter of suppressed sale up to July 7, 1989. Since, there was wilful suppression on the part of the assessee, penalty under section12 (3) of the Act was imposed. THE suppression was established by the department. It was shown that the sale pertaining to bill No. 43 was outside the books. THErefore, when there is wilfulness on the part of the assessee in not recording the sale in the books of account, penalty under section 12 (3) of the Act is exigible. THErefore, we are not inclined to interfere with the order of penalty levied by the authorities below under section 12 (3) of the Act.