AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (4) TMI 1404
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....de in the business place of the appellant under Section 55 of the Act without recording any reasons as required under Section 55 (1) ? (ii) whether the Assistant Commercial Tax Commissioner is empowered to conduct any search/inspection and seizure in the premises of the appellant under Section 55 of the Act without prior recording any reasons by the Commissioner satisfying the legal requirement as envisaged under Section 55 (1) of the Act? (iii) whether any action or the impugned order can be passed against the appellant under Section 55(6) (C) of the Act without serving upon him mandatorily required show cause notice in form 46 ? (iv) whether the impugned orders passed by Assistant Commercial Tax Commissioner thereby imposing penalty....
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....07/2007, in search at trading place and room behind it, godown opposite to trading place in the house of Shri Rammohan Parwal, Bhau Ka Bazar, godown at Geeta Market Bhau Ka Bazar Lashkar, following unaccounted stock at trading place and at undeclared and unrecorded godown worth of Rs. 11,50,426.00/- was found: 1 Estimated cost of physical stock of material found at business place and in the room behind it Rs.493408/- 84718/- 2 Estimated cost of material found in the godown situated in opposition of business place Rs.34805/- 3 Estimated cost of material found in the house of Shri Rammohan Parwal situated at Bhau Ka Bazar Rs.496750/- 4 Estimated cost of material found in the godown situated at Geeta Market Bhau Ka Bazar, Las....
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....ion Certificate and the stock discovered were related to sanitary fittings, floor tiles, glass, plastic goods, kitchen articles, Bath Tub etc. 7. Following findings were recorded by the Assistant Commissioner, Commercial Tax: 8. First Appeal preferred against the assessment order dated dated 18/07/2007 was dismissed on 04/08/2008 by the First Appellate Authority, Deputy Commissioner Commercial Tax Gwalior. Whereagainst Second Appeal preferred before Appellate Board was dismissed by the order impugned herein. 9. In these fact situation, the proposed substantial question of law arises. 10. The first question is whether the Commissioner, Commercial Tax recorded prior reasons as contemplated under Sub-section (1) of Section 55 and whether t....
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.... SC 597]. "53........The necessity of giving reasons has obviously been introduced in sub-section (5) so that it may act as a healthy check against abuse or misuse of power. If the reasons given are not relevant and there is no nexus between the reasons and the ground on which the passport has been impounded, it would be open to the holder of the passport to challenge the order impounding it in a court of law and if the court is satisfied that the reasons are extraneous or irrelvant, the court would strike down the order. This liability to be exposed to judicial scrutiny would by itself act as a safeguard against improper or mala fide exercise of power. The court would, therefore, be very slow to accept, without close scrutiny, the claim ....
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....there shall be no right to appeal. These are the relevant provisions of the Act in the light of which we have to consider the constitutionality of sub- section (3) (c) of section 10 and the validity of the order impounding the passport of the petitioner." 13. In M/s Ajantha Industries and Ors. vs. Central Board Of Direct Taxes New Delhi & Ors.[AIR 1976 SC 437] dwelling on the issue arising from Section 127(1) of Income Tax Act, 1961 as to whether failure to record reasons in the order which was communicated to the Appellants is violation of the principles of natural justice for which the order should be held to be invalid. It was held by Their Lordships: "11. We are clearly of opinion that the requirement of recording reasons under sec....