VENKATESWARA RICE CO Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) This tax revision case arises in the following circumstances :

(2.) The petitioner is a dealer in rice and groundnuts. For the assessment year 1975-76 the petitioner returned a net turnover of Rs. 5,83,060 and claimed an exemption of Rs. 7,91,732. On 24/07/1975, the business premises of the petitioner was searched by the commercial tax authorities and certain variations were found in stock position with reference to the stock registers. The Commercial Tax Officer by his order dated 5/10/1976, determined such total variations at Rs. 36,916 and added the same to the admitted turnover. After disallowing certain exemptions the net turnover was determined at Rs. 9,59,390. Subsequently the Commercial Tax Officer initiate penalty proceedings and by his order dated 6/06/1977, levied penalty of Rs. 9,982 i.e., at five times the tax alleged to have been suppressed.

(3.) Against the said orders of the Commercial Tax Officer, the petitioner preferred two appeals before the Assistant Commissioner, Guntur, contending that the addition of turnover is unwarranted and levy of penalty is illegal. By common order dated 27/10/1977, the Assistant Commissioner while deleting additions of turnover to a tune of Rs. 2,616 confined the addition of turnover of Rs. 34,300 which consisted of Rs. 23,500 towards sales of rice and Rs. 10,800 towards sales of groundnut. While disposing of the appeal against penalty, the Assistant Commissioner held that having regard to the facts of the case, penalty at half the tax due on the amount added would be just and proper. So holding, the Assistant Commissioner set aside the penalty order and remanded to the assessing authority for passing fresh orders in the light of the observations.