2000 (9) TMI 362

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....ain, Consultant, for the Respondents. [Order]. - Facts of the case in brief are that on the basis of checking from the Income-tax department in the factory premises of the appellants on 19-1-1995 and 20-1-1995, an excess of 2.746 MT of MS rounds and shortage of 5.422 MT of M.S. Angles, 11.243 MT of M.S. Gate channels and 0.305 MT of MS Section was detected. According to the department the ap....

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....g the verification of stock of finished goods and towards the harassing and threats which the party had given to them as well as the circumstances under which the partner of their firm had to sign the stock inventory. 2. Arguing for the Revenue Shri B.L. Jain, ld. Consultant submitted that entire case made out based upon the inventory list prepared by the Income-tax authorities on 19-1-199....

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....ording to appellant, the Income-tax authorities adopted coercive and threatening attitude through the checking and they made a visual guess and estimated the weight. In this regard, I find that the Commissioner, Income-tax (Appeals), Agra vide his order dated 1-3-1998 in appeal No. CIT(A)2/ACR/CIR-I/Jhansi/4/98-99 has observed that "A perusal of the submission and letter filed before the A.O. show....

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....ty. Demanding duty, ordering confiscation and imposing penalty on shortage and excess in finished goods on the basis of uncorroborative and unconfirmed inventory list is not legal and justified". 3. Heard Shri Y.R. Kilania, ld. JDR for the Revenue who reiterated the grounds taken by the department. 4. On a careful consideration of the submissions made by both sides and in the facts....