Presumption under transit declaration rules fails where issuance is not proved and the department cannot produce the form.

The presumption under Section 28(B) of the U.P. Trade Tax Act, 1948 arises only where issuance of the transit declaration form is admitted or otherwise proved. As the assessee consistently denied receiving the form and sought a copy, and the revenue failed to produce it before the appellate authorities, the foundational fact for invoking the presumption was not established. The Tribunal's view that issuance had been admitted was unsupported by material and was therefore perverse. The issue was answered in the negative, in favour of the assessee and against the revenue.

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Issues: Whether the Tribunal was correct in sustaining the penalty under Section 15A(1)(q) of the U.P. Trade Tax Act, 1948 by drawing a presumption under Section 28(B) when the assessee had denied issuance of the transit declaration form and the department failed to produce it.

Analysis: The presumption under Section 28(B) arises only when issuance of the transit declaration form is admitted or established. The assessee consistently disputed obtaining the form and specifically sought a copy from the department to test the allegation. The revenue neither supplied the form nor produced it before the appellate authorities. In those circumstances, the foundational fact necessary to trigger the presumption was not proved. The Tribunal's finding that issuance of the form was admitted was unsupported by material and was therefore perverse.

Conclusion: The issue was answered in the negative, in favour of the assessee and against the revenue.

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