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Judgment
Prabha Sridevan, J.—In this case, the Revenue is challenging the Tribunal''s order, settingh aside the penalty.
Heard Mr. Haja Nazirudeen, learned Special Government Pleader (Taxes) Appearingh for the Revenue and Mr. Shanmugam, learned Counsel appearing for the respondent.
The relevant paragraph of the Tribunal''s order reads as follows:
Penality: The point for consideration is whether the adaptation of formula can be termed as a best judgment assessment. In this only the purchase value of goods as per accounts has been adopted. It is not the case of the assessing officer that the dealer had suppressed any purchases. Since the purchase and first sales are not proportionate, he has fixed it by adding gross profit to the net purchase value as per accounts. There is no concealment of any turnover as such. So, we feel that for invoking penalty, there should be a best judgment assessment passed u/s 12(2). As we are consistently holdingh that as per The State of Madras Vs. S.G. Jayaraj Nadar and Sons, , unless thaere are some turnovers found outside the accounts, penalty is not leviable. So, we set aside the penalty.
This is in consonance with the judgment of this Court in Appollo Saline Pharmaceuticals (P) Limited v. Commercial Tax Officer (FAC) reported in [2002] 125 STC 505. Therefore, this tax case is dismissed. No cotsts.