STATE OF TAMIL NADU Vs. I Q SYSTEMS

JUDGEMENT

(1.) BY framing the following Question of Law, the Revenue is on appeal against the order of the Appellate Tribunal deleting the penalty imposed on the assessee under Section 12(3)(b) of the Tamil Nadu General Sales Tax Act, 1959.

(2.) THE penalty was deleted by the Tribunal observing as follows:-

(3.) HERE in this case on merits, it was observed by the Assessing Officer that all along the assessee has considered bonafide that the sale proceeds of REP licences cannot be regarded as turnover liable to tax, so as to offer the sales turn over for taxation, which factum has also been accepted by the Tribunal itself in the earlier assessment order by following earlier order. Hence, we conclude that non-offering of the sale turnover of REP licence is a bonafide act. We do not find any illegality or irregularity in the deletion of the penalty by the Tribunal and we are not able to approve the way in which the learned Special Government Pleader projected the summary of the conclusion for levy of penalty.