Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2014 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 340 - HC - VAT and Sales TaxReassessment of proceedings - Escapement of income - Rejection of books of accounts - best judgment assessment - Held that:- From a perusal of the order-sheet, which has been annexed to the rejoinder affidavit that no reason was recorded by the Assessing Officer on or before 05.09.2005 indicating that pursuant to a survey conducted by the Special Investigating Branch, the officer had reason to believe that some part of the turnover had escaped assessment to tax. There is nothing to indicate from the counter affidavit that the survey report was on the record, which was considered by the Assessing Officer at the time of issuance of the notice date 05.09.2005. In the absence of any reasons being recorded, one finds that the notice was issued without recording any reason therein thereby indicating non-application of mind. Subsequent recording of reasons in the notice dated 14.09.2005 will not validate the original notice dated 05.09.2005. The mandate under Section 21 of the Act is, that there must be reasons to believe that some part of the turnover had escaped assessment to tax. The reasons to believe must be formed on the basis of material before the issuance of the notice by the Assessing Officer, i.e. prior to 05.09.2005 indicating a belief that some part of turnover had escaped assessment. Supplying reasons subsequent to the issuance of notice by the Assessing Officer cannot validate the notice. In the light of the circular, reasons in brief should be given in the notice issued under Section 21 of the Act and that there must be reasons recorded on the file by the Assessing Officer coming to a prima facie conclusion or forming a belief that some part of turnover had escaped assessment to tax before issuance of a notice under Section 21 of the U.P. Trade Tax Act - there is no reason recorded by the Assessing Officer coming to a belief that some part of turnover had escaped assessment to tax prior to the issuance of notice under Section 21 of the Act. Consequently, the impugned notices dated 05.09.2005 issued under U.P. Trade Tax Act and Central Sales Tax Act for the assessment year 2003-04 cannot be sustained and are quashed - Decided in favour of assessee.
|