TMI Blog1995 (4) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessed on an escaped turnover of Rs. 4,200 at 8 per cent besides levy of penalty of Rs. 250 being 1 times the tax due on the turnover actually suppressed being Rs. 2,100. 2.. Aggrieved assessee filed an appeal before the Appellate Assistant Commissioner, before whom it was submitted that there was no assessment under section 12 of the Act and therefore, the assessment under section 16 of the Act cannot be made. Since there was no assessment, made under section 12 of the Act, the Appellate Assistant Commissioner came to the conclusion that the assessment under section 16 of the Act is not possible. Therefore he held that the assessment made under section 16 of the Act is without jurisdiction. Accordingly, he remanded the assessments back ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 16 of the Act in the assessment years under consideration and the levy of penalty under section 16(2) of the Act, are in order. 5.. However, the learned counsel for the assessee submitted that the assessment made under section 12 of the Act was not brought to the notice of the Tribunal at the time when the appeals were heard. Therefore, according to the learned counsel for the assessee, no assessment was made in the case of the assessee under section 12 of the Act. It was further submitted that without making an assessment under section 12 of the Act, the assessment under section 16 of the Act or under section 16-A of the Act of the escaped turnover cannot be made. It was also submitted that inasmuch as the assessment made und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such enquiry as it may consider necessary and after giving the dealer a reasonable opportunity to show cause against such assessment. Section 16(1)(b) of the Act states that where, for any reason, the whole or any part of the turnover of business of a dealer has been assessed at a rate lower than the rate at which it is assessable, the assessing authority may, at any time within a period of five years from the expiry of the year to which the tax relates, reassess the tax due after making such enquiry as it may consider necessary and after giving the dealer a reasonable opportunity to show cause against such reassessment. 8.. Therefore, under section 12 of the Act, original assessment can be made and under section 16 of the Act, assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the assessee, that would not lead to the conclusion that the assessment itself would become invalid. 10.. After the original assessments were made under section 12 of the Act in the assessment years under consideration, the D.C.T.O., II, Enforcement Wing, Tiruvannamalai, under section 16 of the Act completed the assessments on the escaped turnovers and also levied penalties on the suppressed turnovers under section 16(2) of the Act. Therefore, the assessments made on the escaped turnover by the D.C.T.O. II, Enforcement Wing, Tiruvannamalai, are valid assessments, and that the same cannot be considered as invalid assessments on the allegation that no assessment was made under section 12 of the Act originally in the case of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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