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2022 (10) TMI 55 - HC - VAT and Sales TaxEnhancement of sale turnover as well as purchase turnover - books of accounts rejected on framing of assessment - adjustment of admissible input tax credit - HELD THAT:- It is not in dispute that a survey was conducted on the premises of the assessee firm on 24.04.2014. Six loose papers were found during the survey. Paper No. 1 relates to 660 piece 8 mm tube bag which was purchased by the assessee firm from unregistered dealer and transaction of paper no. 3 which was sale of battery to one Manendra Goswami for Rs.19,000/- was subsequently entered into the books of account which was produced at the time of assessment. From the perusal of the order of the Tribunal, it is clear that it has not recorded any finding as to how it has arrived at only reducing the quantum to such extent when it has recorded that entries in the books of account for two loose papers, paper no. 1 and 3 were made subsequently, and solely on the basis of estimate had refused the quantum without any material on record - The Tribunal is the last fact finding authority and before arriving at any finding in case of either increasing or decreasing the quantum it has to record a specific finding as to how it has arrived at the figure. The tax authorities or the tax Tribunal are not justified in increasing or decreasing the quantum at their whims without any rationale or justification. Increasing or decreasing of the quantum either creates or reduces tax liability which either affects the assessee or the revenue. Thus, the taxing authorities should be very careful and watchful in passing orders holding liability upon any assessee for the payment of tax or reducing the quantum. The exercise should not be at the whims and fancies of the tax authorities and the Tribunal, because such exercises have great fiscal impact both on the assessee and the revenue - The Tribunal which is the last fact finding authority should not pass an order in such a casual manner and before arriving at finding should record specific reason as to how it has arrived at such finding either in extending the benefit or denying the benefit. The order of the Tribunal dated 20.06.2022 is unsustainable in the eyes of law and the same is hereby set aside and the matter is remanded back to the Tribunal to consider the matter afresh on merits and record specific finding to each of the grounds so raised in the revision by the assessee - Revision allowed in part.
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