AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (2) TMI 757
X X X X Extracts X X X X
X X X X Extracts X X X X
....s granted to amend/substitute the substantial questions of law. 2. Both these appeals under section 78 of the Gujarat Value Added Tax Act, 2003 (hereinafter referred to as "the Act") give rise to similar questions and hence, the same were taken up for hearing together. 3. In Tax Appeal No.835 of 2017, the order dated 28.12.2016 passed by the Gujarat Value Added Tax Tribunal, Ahmedabad (hereinafter referred to as the "Tribunal") in Second Appeal No.1134 of 2013 is subject matter of challenge, whereas in Tax Appeal No.840 of 2017, the order dated 28.12.2016 passed by the Tribunal in Second Appeal No.1133 of 2013 is subject matter of challenge. 4. Since the facts and issues involve in both the appeals are more or less similar, for the sake ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me was operated for twenty four months. Every month there was a lucky draw and the lucky member whose name was selected in such draw, used to get an appliance worth Rs. 4800/- against the amount paid by him by way of installments till the date of the draw. The assessing authority was of the view that since the first twenty four members got the appliances at a very low price, the output tax on such turnover was also proportionately low and that the corresponding input tax credit was very high and as a result of it, there was a revenue loss. It, therefore, calculated a total difference of Rs. 4,79,100/- in the sales turnover and levied tax of Rs. 71,865/- thereon. The dealer carried the matter in appeal before the Deputy Commissioner of Comme....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing the amount of physical stock on the day of investigation, and had accordingly, worked out the difference in stock illegally, and on the basis of such illegal calculation had compelled the respondent to make disclosure of unaccounted income of Rs. 15,00,000/-. It was the case of the respondent that the assessing authority by placing reliance upon the assessee's statement before the Income Tax authorities had confirmed the tax liability of Rs. 15,00,000/-. In appeal, the first appellate authority had reduced the tax liability to 50% thereof at Rs. 7,50,000/-. The assessee carried the matter in appeal before the Tribunal to the extent the tax liability of Rs. 7,50,000/- was confirmed, whereas the appellant State of Gujarat filed cross obje....
X X X X Extracts X X X X
X X X X Extracts X X X X
....physical stock than the stock as per the books, it is evident that the sales were not accounted for in the books. According to the learned Assistant Government Pleader, the assessing authority was wholly justified in placing reliance upon the disclosure made before the Income Tax authorities by the respondent himself. It was urged that under the circumstances, the Tribunal was not justified in deleting the entire amount of Rs. 15,00,000/- by allowing the appeal of the respondent and disallowing the cross objection of the appellant. 9. On the other hand, Mr. Apurva Mehta, learned advocate for the respondent dealer supported the impugned order on the reasons assigned by the Tribunal. 10. Insofar as the first question which is proposed by th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... from him according to such return and had duly complied with the provisions of sub-section (2) of section 30, no infirmity can be found in the impugned order passed by the Tribunal in holding that the provisions of sub-section (5) of section 30 would not be attracted. The first question, therefore, does not merit acceptance. 12. As regards the proposed questions (2) and (3) regarding deletion of the levy of tax, interest and penalty to the extent of the amount of stock difference of Rs. 7,50,000/-, the facts as emerging from the record reveal that during the course of search proceedings under the provisions of the Income Tax Act, 1961, the Income Tax authorities, upon physical verification and the books maintained by the respondent dealer....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of business of the respondent and that the Investigating Officer did not find any discrepancies in the books of accounts or any other incriminating material and the authorities had also not found any difference in between the book stock and the physical stock. Thus, the assessing authority had relied only on the statement made before the Income Tax authorities and had not taken into consideration the fact that the Income Tax authorities had not taken into consideration the stock lying at the exhibition place as well as the fact that the books of accounts were closed and adjusted and audited by a Chartered Accountant and the investigation report of the department had given a clean chit to the appellant. It is in this backdrop that the Tribu....