Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2017 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 254 - HC - VAT and Sales TaxSearch/survey - Revenue is of the view that the AO ought to have gathered / further material in support which was gathered by the Income Tax Officers, and merely because of the said communique from the Income Tax Department, the addition could not have been sustained - whether there is any reciprocal arrangement of exchanging such information of the search / survey conducted by the other Tax Departments or other Departments? - Held that: - It is directed that not only information would be passed on, but the Officer concerned having information in his possession, is duty bound to transmit even the incriminating material collected during the course of search / survey so that other Tax Department, without wasting further time, acts on such incriminating material rather than calling again and again from the official concerned under whose possession the said incriminating material is lying seized. The purpose would be served of constituting REIC by the Union Government when such information is transmitted by all the Agencies in their possession. Accordingly, it is directed that no sooner a search / survey is conducted wherever necessary, let the Agency who has conducted the search / survey pass on not only the information of search / survey being conducted of the person searched, but also the incriminating material / information gathered will also be transferred / transmitted in a confidential seal cover for use to the Chief / Head of the other Departments after putting a seal & signature by the Officer from whose possession these documents are being sent. Let a direction be given that such information lying in possession be forwarded/transmitted within a period not later than 3 months and in case information is not passed than the said officer would be held personally liable of the consequences which may follow. The power of prosecution plays a deterrent effect not only on the tax payer who has evaded the tax but it goes a long way and would be deterrent on the society / other tax payers at large. It is true that it should be sparingly used and not in a routine manner wherever evasion takes plays but at-least in cases where it is noticed that there is huge evasion of taxes over the years, that such power should certainly be used by the authorities respectively. Therefore, direction is given that as and when needed though sparingly such power of prosecuting the person / tax evader should be used. Therefore, this need to be taken care of henceforth by all the authorities concerned. Petition allowed - decided in favor of Revenue.
|