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2017 (11) TMI 1501 - HC - VAT and Sales TaxInitiation of reassessment proceedings - Section 21 of the 1948 Act - sale of SSF - Held that: - In view of the inextricable and umbilical link between the material and the formation of an opinion, in the considered view of this Court, it was wholly improper for the assessing authority to proceeded to assess the revisionist with respect to the sale of SSF - the assessing authority had never decided to reassess the revisionist on the issue of SSF. The formation of opinion was based solely upon material which seemed to suggest that the disclosure with respect to closing stock of forms was incorrect. Scope of SCN - Held that: - During the reassessment or after the said process was set in motion, it was not open to the assessing authority to review the entire assessment undertaken earlier. The path which the assessing authority proceeded to traverse could not have been validated or conferred an "imprimatur" by the Tribunal. This more fundamentally so since this issue neither formed the subject matter of the permission which was accorded by the Additional Commissioner, nor did it form part of the show cause notice. This fundamental flaw in the course adopted by the assessing authority could not have been cured by the liberty which was accorded by the Tribunal in terms of the order impugned. This additionally because the power to reassess was authorized by the Additional Commissioner in terms of the proviso to section 21. But for this permission, admittedly, the assessing authority had no jurisdiction to initiate or commence proceedings for reassessment. Revision allowed.
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