2019 (7) TMI 1237

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....eferred to as the Act). By that order, the Tribunal has confirmed the demand of penalty Rs. 2,16,400/- imposed on the assessee. 2. The present revision has been pressed on the following question of law: "Whether in face of the fact that there was no material to rebut the nature of the transaction being one of stock transfer in light of the fact that during the entire year, only one transaction worth Rs. 5,00,000/- was doubted against the total stock transfer in excess of Rs. 4,00,00,000/-, and the finding as to the intention to evade tax and the consequential penalty is grossly perverse?" 3. Heard Sri Rakesh Ranjan Agarwal, learned senior counsel, assisted by Sri Ankur Agarwal, learned counsel for the assessee and Sri B.K. Pa....

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....r, other than the transaction in dispute, the assessee never alleged or found to have engaged in import of any goods contrary to law. Even the value of the transaction was about Rs. 5,00,000/- whereas the total goods imported inside the State of U.P. during the entire year, by way of stock transfer exceeded Rs. 4,00,00,000/-. Therefore, keeping in mind the entire undisputed facts, in such circumstances of the present case, it has been submitted, there was no intention to evade tax and that conclusion may never have been drawn in light of such facts. 7. Reliance has been placed on the decision of the division bench of this Court in M/s Rama Pulses Vs. State of U.P. & Ors., 2009 NTN (Vol.41) 189 and another decision of the learned single j....

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....ore importantly, he had submitted that the transaction was one of stock transfer. In support where of, he had adduced evidence in shape of stock transfer invoice, bilty etc., which documents were produced at the stage of detention of goods. Clearly, none of the authorities has applied their mind to that explanation and have not recorded any finding to reject the explanation based on the claim of stock transfer. Generalities have crept for into the order of the Tribunal wherein it has dismissed the appeal after observing that after the abolition of the check posts, there is a rampant tendency among dealers not to fill up coloumn no.6. That observation, even if correct, may never have led to rejection of appeal filed by the assessee, inasmuch....