AA couldn’t demand tax merely on the basis of statement made by assessee during search by IT authority: HC

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Section 30, read with section 29, of the Gujarat Value Added Tax Act, 2003 – Interest – Assessment year 2012-13 – Assessing Authority levied interest upon assessee under section 30(5) on plea that tax leviable on overall turnover was paid late – Tribunal deleted interest levied upon assessee – Whether since assessee had furnished returns within time prescribed and had paid into Government treasury whole of amount due from it, provisions of section 30(5) would not be attracted – Held, yes [Para 11] [In favour of assessee]

Section 34 of the Gujarat Value Added Tax Act, 2003 – Search and seizure – Assessment year 2012-13 – Income Tax authorities carried out search upon assessee and found difference in stock, which was less than 5 per cent – In circumstances, assessee made disclosure of unaccounted income of Rs. 15 lakhs and also made statement before Income Tax AuthoritiesAssessing Authority by placing reliance upon assessee’s statement levied a tax of Rs. 15 lakhs upon itTribunal deleted said tax – Whether levy of tax upon assessee merely on basis of statement made by it before Income Tax authorities was rightly deleted by Tribunal – Held, yes [Para 14] [In favour of assessee]

Citation: [2018] 89 taxmann.com 413 (Gujarat)