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2017 (1) TMI 127 - RAJASTHAN HIGH COURT

2017 (1) TMI 127 - RAJASTHAN HIGH COURT - TMI - Imposition of penalty u/s 77(8) of the RST Act, 1994 - unaccounted stock - whether a voluntary statement can be contested later? - Held that: - if there is voluntary statement and not complained of to the higher authorities within a reasonable period, such a fact cannot be accepted in appellate proceeding later on and after a considerable long period - the order of Tax Board is not sustainable and is required to be interfered and is accordingly int .....

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1/2007/Sikar, whereby appeal filed by the respondent has been allowed. 2. The brief facts noticed are that on 23.10.2001 a survey was conducted at the business premises of the respondent assessee, who is a dealer of fire works, where the officers found that there was unaccounted stock and there was wide variation insofar as books are concerned as well as the actual stock found. It was found that there was an excess stock to the tune of an amount of ₹ 1,50,750/- which was not recorded in th .....

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Dy. Commissioner (Appeals), where it was asserted that there was coercion and pressure on the assessee at the time of survey and there was violation of provisions of Rule 50 of the RST Rules, 1995. However, the DC(A) being not satisfied with the explanation offered by the respondent, upheld the penalty. On a further appeal preferred by the respondent before the Tax Board, the Tax Board accepted the contention of assessee and held that there is violation of Rule 50 and that there was no signatur .....

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of survey, show cause notice was given and the assessee himself wrote a letter on the spot duly signed that he is ready, willing and prepared to pay the penalty and that there is an excess stock to the extent of ₹ 1,50,750/-. Learned counsel also produced the records of AO to show that the finding reached by the Tax Board that there are no signatures of the AO on the stock statement or of the assessee, is apparently wrong because there are signatures not only of the assessee but counter s .....

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pressure built up by the AO at the time of survey. Learned counsel also contended that u/R. 50, only in a case where goods are to be attached or seized, two witnesses are required otherwise the witnesses are not necessary where there is a voluntary statement of the assessee. Learned counsel also relied on the judgment of this court in ACTO v. M/s Lining Bukram House [STR 175/2009, decided on 5.10.2016] where this court has taken into consideration identical facts that if a claim of coercion is s .....

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rough the records which proved that the AO did not sign in the stock statement prepared at the time of survey. Learned counsel also contended that there was pressure and coercion on the assessee to surrender certain stock which was recorded and disclosed and such an order passed by the AO was not sustainable and has rightly been interfered by the Tax Board, and contended that the judgment of this court in the case of ACTO v. M/s Lining Bukram House (supra) is distinguishable. Learned counsel rel .....

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ssee as well as Tax Board that there are no signatures of the assessee or of the AO, on stock statement is not found correct and even the finding reached by the Tax Board in my view is not well justified. The original records do prove that there is a stock statement running into several pages and both the assessee as well as the AO have duly signed the statement. A trading account was also drawn from 1.4.2001 to 22.10.2001 which is also duly signed by the assessee as well as counter signed by th .....

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