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2009 (11) TMI 960 - HC - VAT and Sales TaxWhether the partial compounding applied for by the assessee and approved by the assessing officer is permissible under the provisions of Section 7(1)(a) of the Act? - Held that: - the compounding scheme for payment of tax opted by the assessee and accepted by the officer, does not achieve finality, because it is subject to supervisory jurisdiction by the Deputy Commissioner. Therefore, if the scheme approved by the officer is in violation of the charging provision, then the Deputy Commissioner has power under Section 35 to correct the same which extends to even correction of final assessment wherein tax is finally determined. No contract between assessee and assessing officer is conceived under the Act and no order of the officer prejudicial to the Revenue is immune from scrutiny by the Deputy Commissioner under Section 35 of the Act. The assessee will have liability to pay interest partly because of the mistake committed by the officer in approving the compounding applied for by the assessee in violation of the charging provision - the assessing officer is directed to limit levy of interest under Section 23(3A) or Section 23(3) at compensatory rate of 12% per annum, for the entire period of delay.
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