though the search proceedings were conducted at the premises of the writ applicant, no incriminating material was recovered from the premises and merely on the basis of loose slips discovered from the bag of the staff member, the respondent authority has related the involvement of the writ applicant with regard to evasion of tax. It further appears that based on such alleged loose slips, the Assessing Officer on presumption has computed tax liability of the writ applicant firm to the tune of an amount of Rs.1,80,000/- and has subsequently passed an order of assessment on 29.03.2019 thereby raising total dues to the tune of Rs.4,57,10,778/-, which includes tax of an amount of Rs.98,04,440/-, interest of an amount of Rs.67,65,064/- and penalty to the tune of Rs.2,91,41,274/-. In support of his prima facie case, Mr. Sheth has further relied upon the Judgment of this Court in Tax Appeal No. 229 of 2016, in the case of Jagdish distributors Pvt. Ltd. To contend that additions could have been made only to the extent of turnover determined on the basis of loose slips and further adhoc addition were not legally permissible. Thus, it was submitted that the First Appellate Authority as well as the Tribunal have however ignored aforesaid aspect and has instead insisted for pre-deposit of huge amount of Rs.20,00,000.
