STATE OF MADRAS vs S. G. JAYARAJ NADAR & SONS

The Supreme Court upheld the High Court's decision regarding the assessment under the Madras General Sales Tax Act, 1959, specifically interpreting Sections 12(2) and 12(3). The Court clarified that a penalty can only be levied when an assessment is made under Section 12(2) due to incomplete or incorrect returns. Since the first and third items' turnovers were based on the assessee's accepted books, the penalty was not applicable to these items, confirming the High Court's ruling that only the second item warranted a penalty.