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2022 (6) TMI 973 - HC - VAT and Sales TaxRecomputation of tax and imposition of penalty - whether alleged loan transaction of the Assessee was in fact an instance of suppression of purchases or not? - HELD THAT:- It is seen from the impugned order of the Tribunal that a letter was produced from Mr. Sikaria and placed before the Tribunal in which the statement of the account of the Assessee as appearing in the books of Mr. Sikaria was enclosed. It is further seen that on the part of the Assessee, material was placed to substantiate the contentions that the transaction was in fact a loan transaction. In MITTAL & COMPANY VERSUS COMMISSIONER OF SALES TAX, UP., LUCKNOW [1987 (8) TMI 420 - ALLAHABAD HIGH COURT], it was rightly pointed out that although the initial onus was on the Assessee to show that no sale was made, the question arose as to how the Assessee is expected to discharge that onus - Since in that case the Revenue failed to disprove the Assessee’s contention, the addition made to the taxable turnover presuming sales, was set aside. As far as the present case is concerned again, the Assessee cannot be expected to negatively prove that there was no purchase suppression. The Assessee in fact placed materials to show that the transaction was a loan transaction. If the Department was to doubt it, it had the onus then shifted to the Department to show that there was in fact the transaction which mimicked purchase suppression. With the Department not having discharged the onus, the authorities below including the Tribunal, the ACST and the STO were in error in proceeding on a presumption that it was a case of purchase suppression. The Court answers the question framed in favour of the Assessee and against the Department and sets aside the impugned orders of the Tribunal, the ACST and the STO - revision petition allowed.
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