TMI Blog1968 (1) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 11(3) of the C.P. and Berar Sales Tax Act (Act 21 of 1947), as extended to the Vindhya Pradesh region. Thereafter, the Sales Tax Officer reviewed his order and passed a fresh order of assessment. In accordance therewith, the applicant was found to have paid a sum of Rs. 6,900 in excess of the tax due, and the applicant, therefore, applied for a refund of the amount. During these proceedings the Assistant Commissioner of Sales Tax acting suo motu revised the assessment and passed an order dated 1st October, 1957, whereby the resultant tax payable was determined at Rs. 6,825-9-0. Thus, the excess payment in consequence of this revisional order worked out to be Rs. 1,977-6-6. On appeal by the applicant, the Deputy Commissioner of Sales Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the power to revise suo motu under section 22(5) an order of assessment was controlled and limited by section 11A, under which any turnover which had "escaped assessment" or had been "assessed at a lower rate", could be brought to tax "within three calender years" of the expiry of the period. The power of revision under section 22(5) ibid for enhancing the tax for any period could not, therefore, be invoked or exercised after expiry of the period fixed under section 11A. The initiation of proceedings in revision by the Commissioner of Sales Tax by the impugned notice dated 8th January, 1965/4th March, 1965, for enhancing the assessment made in the year 1954-55, after a lapse of nearly 10 years, must be regarded as altogether in excess of ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ambit of section 11A." We are fully in accord with this view. The view stands fortified by the decision of their Lordships of the Privy Council in Commissioner of Income-tax v. M/s. Khemchand Ramdas[1938] 6 I.T.R. 414; A.I.R. 1938 P.C. 175., where Lord Romer, J., stated: "It is true that the Act nowhere imposes any limit of time within which an assessment under the provisions of sections 23 and 29 is to be made, and that the service of the notice of demand can therefore be made at any time. But it is not true that after a final assessment under those sections has been made, the Income-tax Officer can go on making fresh computations and issuing fresh notices of demand to the end of all time. When once a final assessment is arrived at, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this sub-section after the expiry of three years from the date of the order sought to be revised." The impugned notice having been issued beyond the period stated, is invalid as upon the expiry of that period, the power itself was nonexistent and, therefore, no such notice could be issued. 7.. Even otherwise, the same result is brought about by reference to the fiction introduced by section 52(1) of the new Act. As a consequence of this legal fiction, the order of assessment passed by the Sales Tax Officer in the year 1954-55 must be "deemed" to have been made under the new Act. Their Lordships of the Supreme Court have in The Sales Tax Officer, Jabalpur v. Hanuman Prasad[1967] 19 S.T.C. 87; 1967 M.P.L.J. 138 (S.C.). held in like circum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led Act by the respondent remained unaffected and intact. The rights and liabilities, which had been acquired or incurred under the repealed Act, included the right or liability to be assessed in accordance with the provisions of the repealed Act in respect of turnover of sales effected during the time when that Act was in force. The repealed Act laid down what turnover was taxable, how it was to be computed, and at what rate the tax was to be charged. These provisions clearly created rights as well as liabilities of dealers. Those rights and liabilities were thus preserved by section 52 of the new Act." A fortiori, it must be held that the applicant acquired a right not to be reassessed in respect of a turnover which had been reassessed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
