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TMI Blog1964 (10) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... pany at Rs. 50 lakhs for the year 1948-49 and determined the appropriate tax liability. In appeal to the Judge (Appeals) Sales Tax the order passed by the Sales Tax Officer was set aside, that authority holding that the appellant-company was not a dealer within the meaning of section 2(c) of the Act. But the order of the appellate authority was set aside by the Judge (Revisions) Sales Tax by order dated March 28, 1955, and the case was remanded to the Sales Tax Officer for "fresh assessment". In the view of the Judge (Revisions) Sales Tax it was necessary to determine "the ownership of the goods at the time of their sale." The Sales Tax Officer then issued a notice calling upon the appellant-company to produce its books of account and other relevant documents on July 23, 1955, for the purpose of assessment for the year 1948-49. The appellant-company contended that as the original assessment under section 21 had been set aside by the Judge (Revisions) Sales Tax, no proceeding in connection with that assessment was pending and reassessment was barred because more than three years had elapsed since the end of the year of assessment. The Sales Tax Officer rejected the contention of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of section 10 as it stood at the relevant time, it was provided: "The Revising Authority may in his discretion at any time suo motu or on the application of the Commissioner of Sales Tax or the person aggrieved, call for and examine the record of any order made by any Appellate or Assessing Authority under this Act, for the purpose of satisfying himself as to the legality or propriety of such order and may pass such order as he thinks fit: Provided that no such application shall be entertained in any case where an appeal lay against the order, but was not preferred." Section 21 as it stood at the relevant time provided: "Where the whole or any part of the turnover of a dealer has, for any reason, escaped assessment to tax in any year, the Assessing Authority may, at any time within three years from the expiry of such year, and after issuing notice to the dealer and making such enquiry as may be necessary, assess the tax payable on such turnover." In the view of the High Court section 21 which imposed upon the Assessing Authority duty to exercise his power to assess turnover which escaped assessment within three years from the end of the year of assessment applied only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on or at the direction of the Commissioner exercising his powers under section 33 of the Indian Income-tax Act, 1922, except in the circumstances and within the time prescribed by sections 34 and 35 of the Act. They observed that sections 34 and 35 were exhaustive, and prescribed the only circum- stances in which, and the only time in which, such fresh assessments could be made and fresh notices of demand could be issued. As the Income-tax Officer took no fresh step within one year under the statute, he was "hopelessly out of time whichever of the two sections was applicable." But the order of the High Court must still be confirmed, because during the pendency of the proceeding in the High Court section 21 was extensively amended. The section as amended by Act 19 of 1956 from May 28, 1956, reads as follows: "(1) If the assessing authority has reason to believe that the whole or any part of the turnover of a dealer has, for any reason, escaped assessment to tax for any year, the assessing authority may, after issuing notice to the dealer, and making such enquiry as may be necessary, assess or reassess him to tax: Provided that the tax shall be charged at the rate at which it woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... substituted:" The amendment section was therefore to be deemed to be in operation at all material time since the enactment of the U.P. Sales Tax Act, 15 of 1948. The Legislature has given a clear retrospective operation to the amended section as from the date on which the Principal Act came into operation, and correctness of the order of the Sales Tax Officer holding that there was no bar of limitation to the making of a fresh assessment pursuant to the order of the appellate or revising authority had to be adjudged in the light of section 21 as amended by Act 19 of 1956. The words used by the Legislature are precise and admit of only one interpretation that proceedings taken for assessment or reassessment in consequence of, or to give effect to an order of the appellate or revising authority or an order passed by the High Court under section II may be taken notwithstanding the expiry of the period prescribed by sub-section (2) of section 21. Mr. Pathak on behalf of the appellant-company pleaded that even if that be the true interpretation of section 21 as amended, the section could only apply to proceedings which were pending at the date on which the Act was amended, but in law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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