9911796707
TMI Blog1978 (11) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... ing rise to this reference briefly are as follows On 9th February, 1966, an assessment order was passed by the Sales Tax Officer determining the gross turnover at Rs. 4,18,429 though according to the return it was Rs. 5,09,027. According to the return, the taxable turnover was Rs. 5,60,600, but the Sales Tax Officer determined the taxable turnover at Rs. 2,51,398. Thus, the assessing authority determined the gross and taxable turnovers substantially less than the figures shown in the return filed by the assessee. Later on, the Sales Tax Officer issued a notice under section 19(1) of the Act for reassessment. The explanation offered by the assessee was not accepted and the Sales Tax Officer reassessed the tax payable by the assessee. On appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring any period has been under-assessed or has escaped assessment or assessed at a lower rate or any deduction has been wrongly made therefrom, the Commissioner may, at any time within five calendar years from the date of order of assessment after giving the dealer a reasonable opportunity of being heard and after making such enquiry as he considers necessary, proceed, in such manner as may be prescribed, to reassess the tax payable by such dealer and the Commissioner may direct that the dealer shall pay, by way of penalty in addition to the amount of tax so assessed, a sum not exceeding that amount: Provided that in the case of an assessment made under any Act repealed by section 52, the period for reassessment on the ground of under-asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian Income-tax Act, 1922. In that case, the Privy Council held that to enable the Income-tax Officer to initiate proceedings under section 34 of the Indian Income-tax Act, 1922, it was enough that the Incometax Officer on the information which he had before him and in good faith considered that he had good ground for believing that the assessee's profits had for some reason escaped assessment or had been assessed at too low a rate. The Tribunal, therefore, erred, in our opinion, in holding that the provisions of section 19(1) could be invoked only if in the original order there could be shown some bona fide mistake. The scope of the expression "escaped" occurring in section 19(1) of the Act came up for consideration before us in Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess any sale or purchase of goods chargeable to tax under the Act, it is a case of "escaped assessment ". The Tribunal has not found that the action of the Sales Tax Officer in initiating proceedings under section 19(1) of the Act was not bona fide. In these circumstances, the view of the Tribunal that the assessing authority had no jurisdiction to initiate proceedings for reassessment under the provisions of section 19(1) of the Act cannot be upheld.
4.. For all these reasons, our answer to the question referred to us for opinion is in the affirmative and against the assessee. In the circumstances of the case, parties shall bear their own costs of this reference.
Reference answered in the affirmative. X X X X Extracts X X X X X X X X Extracts X X X X
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