Punjab Diesel Agencies Vs Commissioner Commercial Tax U.P (Allahabad High Court)
The Allahabad High Court allowed a revision against the order dated 30.01.2018 passed by the Commercial Tax Tribunal, Allahabad in Second Appeal No. 9 of 2018 for Assessment Year 2010-11 arising from penalty proceedings under Section 54(1)(2) of the U.P. VAT Act. The revisionist contended that the penalty was imposed solely because a best judgment assessment had been confirmed, disclosed turnover was enhanced, and an additional tax liability of ₹10,000 was determined, without any independent finding. The Revenue argued that the revisionist had failed to disclose the true and correct turnover.
The Court noted that although the books of account had been rejected and turnover enhanced, none of the authorities had recorded any finding that the revisionist had concealed turnover particulars or deliberately furnished inadequate particulars. It held that rejection of books of account and enhancement of turnover alone could not justify penalty under Section 54(1)(2) in the absence of positive material establishing deliberate concealment. Accordingly, the impugned orders were set aside, the revision was allowed, costs of ₹5,000 were awarded to the revisionist payable within two months, the question of law was answered in favour of the revisionist, and the matter was directed to be listed in chambers on 29.09.2026 for compliance.
