TMI Blog2015 (9) TMI 1514X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority for doing assessment or reassessment after expiry of the period, but not beyond a period of eight years, even if it involves a change of opinion. We cannot hold this to be a case, where the Authority has acted without there being any material at all or the materials are such that they cannot reveal a connection between the appellants and M/s Parmarth Iron (P) Limited, as it is a case of Sri H.M. Bhatia that records in the electronic form reveal that the sales were indeed effected by the appellants to M/s Parmarth Iron (P) Limited. These transactions, apparently, are denied by the appellants. As to the question as to what is the probative value of these materials and whether they would clearly show that the appellants had indeed made sales, which were not reflected in the Accounts and therefore, the appellant would become liable for the enhanced liability under the Tax law; these are all matters, in our view, which should be left open to the Assessing Authority. For these reasons, we also would not lay much store by the contentions of the learned Senior Counsel for the appellants that though the request was made for calling for these documents and for right to cross exam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessing authority in that behalf, such assessment or re-assessment may be made after the expiration of the period aforesaid but not after the expiration of eight years from the end of such year notwithstanding that such assessment or re-assessment may involve a change of opinion]: [Provided further that the assessment or re-assessment for the Assessment Year 1987-88 may be made by March 31, 1993]: [Provided also that if the eligibility certificate granted under Section 4-A has been amended or cancelled by the Commissioner under sub-section (3) of Section 4-A, the order of assessment or re-assessment may be made within one year from the date of receipt by the assessing authority of the copy of the order amending or cancelling the aforesaid certificate or by March 31, 1995, whichever is later: Provided also that the assessment or re-assessment for the Assessment Year 1989-90 may be made by March 31, 1995]. 6. This is a case, where the Additional Commissioner decided, after issuing notice to the appellants, to grant permission for carrying out reassessment. The stand of the Revenue appears to be that there was a raid by the Excise Authority in the premises of M/s Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssan vs. The Commissioner of Trade Tax, U.P., Lucknow reported in 2009 NTN (Vol. 41)-137 and M/s K.P. Coal Company, Mal Godam Road, Ballia vs. The Commissioner of Trade Tax, U.P. reported in 2009 NTN (Vol. 40) -257. 8. Learned Senior Counsel would further contend that actually M/s Parmarth Iron (P) Limited, against which proceedings were taken similarly under Section 21, has challenged the proceedings before the Hon ble Apex Court by filing SLP against the judgment of the Allahabad High Court and the special leave has been granted and the interim order was also granted. He would further contend that having regard to the location of the units of the appellants and that of M/s Parmarth Iron (P) Limited, it is a case of interstate sales and he poses a question when such a sale can be done, where Form-31 and Form-C would be involved and that would have to pass through the check post and the reliance placed on materials seized from M/s Parmarth Iron (P) Limited, and without anything more, could not have led the Additional Commissioner to pass orders under Section 21 of the Act, he contends. 9. Per contra, Sri H.M. Bhatia, the learned Government Pleader would submit that the w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed ignoring the statutory dispensation. 16 In the instant case, the Act provides complete machinery for the assessment/reassessment of tax, imposition of penalty and for obtaining relief in respect of any improper orders passed by the Revenue Authorities, and the assessee could not be permitted to abandon that machinery and to invoke the jurisdiction of the High Court under Article 226 of the Constitution when he had adequate remedy open to him by an appeal to the Commissioner of Income Tax (Appeals). The remedy under the statute, however, must be effective and not a mere formality with no substantial relief. In Ram and Shyam Co. V. State of Haryana this Court has noticed that if an appeal is from Caesar to Caesar s wife the existence of alternative remedy would be a mirage and an exercise in futility. 11. On query being raised from the Court, as to what is the alternative remedy open in the context of an order passed under Section 21(2) of the Act, he would specifically submit that if an order of reassessment is passed against the appellant and the appellant carries the matter in Appeal, it is open to the Appellate Authority to consider the complaint against the order pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t cannot be said that there were no reasons with the Additional Commissioner. The materials in the form of the records seized during the raid conducted by the Excise Authorities and the statement would indeed furnish materials and, therefore, there were reasons for the Commissioner to permit reassessment to be made. We cannot hold this to be a case, where the Authority has acted without there being any material at all or the materials are such that they cannot reveal a connection between the appellants and M/s Parmarth Iron (P) Limited, as it is a case of Sri H.M. Bhatia that records in the electronic form reveal that the sales were indeed effected by the appellants to M/s Parmarth Iron (P) Limited. These transactions, apparently, are denied by the appellants. As to the question as to what is the probative value of these materials and whether they would clearly show that the appellants had indeed made sales, which were not reflected in the Accounts and therefore, the appellant would become liable for the enhanced liability under the Tax law; these are all matters, in our view, which should be left open to the Assessing Authority. For these reasons, we also would not lay much store ..... X X X X Extracts X X X X X X X X Extracts X X X X
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