https://www.taxtmi.com/caselaws?id=159556 Penalty under the Rajasthan Sales Tax Act could not be sustained merely on presumption where the assessee had produced books of account and purchase bills to explain alleged excess stock. Once documentary evidence was filed, the assessing authority was required to inquire into its genuineness, verify transactions with suppliers, and examine surrounding circumstances before treating the documents as fabricated. Penalty could not rest on suspicion alone; the authority had to place material on record proving falsity of the documents or establishing the stock discrepancy through proper investigation. The rejection of evidence without such inquiry was held to be perverse, and fresh inquiry was required. en-us Tue, 26 Nov 1991 00:00:00 +0530 Wed, 27 Nov 2013 14:01:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=159556 Penalty under the Rajasthan Sales Tax Act could not be sustained merely on presumption where the assessee had produced books of account and purchase bills to explain alleged excess stock. Once documentary evidence was filed, the assessing authority was required to inquire into its genuineness, verify transactions with suppliers, and examine surrounding circumstances before treating the documents as fabricated. Penalty could not rest on suspicion alone; the authority had to place material on record proving falsity of the documents or establishing the stock discrepancy through proper investigation. The rejection of evidence without such inquiry was held to be perverse, and fresh inquiry was required. Case-Laws VAT and Sales Tax Tue, 26 Nov 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=159556