Allegation of Manufacturer 'Clandestinely' Clearing Goods To Escape Tax Must Be Based On 'Tangible Evidence': Delhi HC

The Delhi High Court held that allegations against a manufacturer of clandestinely clearing goods to evade taxes must be based on tangible evidence. In the case, the tax authorities accused the manufacturer of attempting to avoid taxes by misreporting the goods. However, the Court stressed the importance of providing concrete evidence to support such allegations. The ruling sets a precedent for the proper handling of such claims and reinforces the standard of evidence required for investigating tax evasion. It underscores the principle of fairness in tax proceedings.