Appellants. M/s. Santhoshi Matha saw mill timber & furniture works, Hunter road, Warangal.
Vs.
Respondent: The state of Andhra Pradesh.
The assessing authority levied penalty at 5 times to the tax due. Contended that the assessment was completed U/s 14 (1) of the Act, therefore the penalty levied by the assessing authority U/s 14 (1) (8) of the act is against the provisions of the act. Also contended that penalty was levied by taking the rate of tax @ 8%, instead of 4%. Held that the actual penalty leviable is only on 4% rate and not 8%. Thus the appeal is partly allowed.
Source: Trade and Taxes. Volume no.18. Part no.5. May 2011. Page no. 217.
Comments: Penalty should be based on the rate of tax levied.
