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2015 (7) TMI 547 - HC - VAT and Sales TaxSecond re-assessment - KVAT - Power to review - After the audit of the books of accounts of the petitioner, re-assessment proceedings were initiated under sub-section (1) of Section 39 of the Karnataka Value Added Tax Act and on 6.6.2014, an order was made holding that petitioner was entitled to refund - When the petitioner was expecting refund of the said amount, once again re-assessment proceedings were initiated under Section 39(2) of the Act and an order was made on 21.10.2014 (Annexure-A to the writ petitions) holding that petitioner was in arrears of tax, interest and penalty. Held that:- The only condition for making further reassessment in addition to earlier assessment is when the authority takes notice of further evidence. But in the instant case, there was no further evidence which came to the notice of the assessing authority. Merely because the assessment in respect of M/s.Amma construction was made subsequently those facts could not have been taken note of in the instant case. There must be further evidence which is noticed by the assessing authority so as to make further assessment or reassessment. The assessing authority thus did not have any jurisdiction to do so and therefore subsequent assessment orders at Annexures A1 and B1 and demand notices at Annexures- A2 and B2 respectively are quashed. - However, if the respondent/department is of the view that the assessment made at Annexure-C calls for any further interference, then liberty is reserved to them to take such action in accordance with law. With regard to Refund - Liberty is reserved to the petitioner to make a representation and if such a representation is made, the same shall be considered in accordance with law and expeditiously within a period of two months from the date of representation. - Decided partly in favor of assessee.
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