Liberal consideration of late-filed declaration forms allows concessional tax treatment subject to verification and fresh adjudication.

E-1 and C declaration forms produced at the appellate or revisional stage, together with an application for additional evidence, were held to deserve consideration where the transaction was admitted to be inter-State and rejection would expose the assessee to a higher rate of tax. The High Court followed the liberal approach that, if the forms were unavailable at assessment for unavoidable reasons but were later filed before the appellate forum, the authority should examine them subject to verification so tax is levied in accordance with law. The Tribunal's failure to consider the additional-evidence request was found improper, and the matter was remitted for fresh decision.

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Issues: Whether declaration forms E-1 and C, produced at the appellate/revisional stage along with an application for additional evidence, could be accepted and considered for granting the concessional treatment claimed by the assessee.

Analysis: The transaction was admitted to be an inter-State transaction, and rejection of the forms would result in taxation at a higher rate. The Court followed the earlier view that where the forms were not available at the time of assessment for unavoidable reasons, but were produced before the appellate forum, the authority should adopt a liberal approach and consider them so that tax is levied only in accordance with law. The Tribunal ought not to have ignored the additional-evidence request and could have examined the effect of the forms subject to verification.

Conclusion: The forms were required to be accepted for consideration, and the matter was remitted to the Tribunal to take them into account and decide the issue afresh in accordance with law.

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