TMI Blog2001 (1) TMI 937X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act was issued vide annexure P5. The basic requirement for initiating proceedings under section 24 of the Act is the existence of reason to believe that any turnover has escaped assessment or has been under-assessed or has been assessed at a rate lower than the rate at which it is assessable or that any deduction has been wrongly made from turnover. 2.. Pursuant to notice, respondents have appeared and have produced the records. Counter-affidavit has also been filed. Stand of the respondents as indicated in the counter-affidavit is that petitioner's claim of having purchased goods that had suffered first point tax is false and that is the reason for which proceedings under section 24 of the Act were initiated. Reference has also been ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce have been discovered by the Commissioner will not necessarily amount to disclosure within the meaning of this section. (2) ................................." 4.. Though learned counsel for respondents is correct in stating that on July 10, 2000 there was some indication as to the reason which had weighed with the assessing officer for initiating proceedings under section 24 of the Act, that according to us is not sufficient. While directing initiation of proceedings under section 24 of the Act, Sales Tax Officer has to indicate as to why such action was necessary. He must at least indicate what is the basis for his prima facie conclusion about the escapement of assessment or under-assessment or other stipulations in the provision. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It postulates that the assessing officer holds the belief induced by the existence of reasons for holding such belief. It contemplates existence of reason on which the belief is founded, and not merely a belief in the existence of reasons inducing the belief. However, there is no requirement in law which postulates recording of reason in the notice to be issued in terms of section 24 of the Act. 5.. Above being the position, the notice issued in terms of section 24 of the Act is indefensible. Various other points were also taken in the writ petition. We do not think it necessary to deal with them in view of the aforesaid conclusion. Accordingly, we nullify the notice (annexure P5) issued under section 24 of the Act. We make it clear th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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