9911796707
TMI Blog2017 (7) TMI 374X X X X Extracts X X X X X X X X Extracts X X X X ..... WP No. 5767 Of 2005, WPT No. 7075 Of 2007 - - X X X X Extracts X X X X X X X X Extracts X X X X ..... e, they would be covered under Clause (i) of sub-section (8). Sub-section (9) of Section 27 is relevant for decision making, therefore, it is reproduced hereunder:- "(9) Notwithstanding anything contained in subsection (8), where assessment proceedings in respect of any dealer relating to any year cannot be completed before the expiry of the period specified therefor in the said sub-section, the State Government, may by notification, for reasons to be recorded in writing, extend the period for the completion of the assessment proceedings in respect of such dealers by such further period as may be specified in such notification." 5. This batch of writ petitions was heard earlier wherein Shri Neelabh Dubey, learned counsel for the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the Act, does not get himself registered therein, the period of assessment prescribed is five years. We are not concerned with the alternate situation as in the instant appeals not only the assessees are registered dealers, they had also filed their returns regularly within the prescribed period and, therefore, assessments were to be completed within a period of three years from the last date prescribed for furnishing the returns, which is the normal period prescribed. At the same time, sub-section (10) of Section 11 gives power to the Commissioner to extend a period of three years. Interestingly, there is no upper limit prescribed for which the period can be extended, meaning thereby such an extension can be given, theoretically, for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the power can be exercised for extending the period for any length of time, subject however to the condition that the Commissioner is bound to record the reasons justifying such an extension. Obviously, when the Commissioner passes such an order and gives reasons, not only he would have to justify his action of extending time but also the period by which the time is extended. In the Karnataka legislation, the power is of "deferment". In that legislation as well, the assessment order is to be passed within three years as sub-section (5) of Section 12 of the Karnataka Sales Tax Act stipulates that no assessment shall be made after a period of three years from the date on which the return under sub-section (1) of that order is submitted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arred. The provision for exclusion of time in computing the period of limitation of deferment of assessment is meant to prevent further running of time against the Revenue if the limitation had not expired." (emphasis supplied) It was also observed that upon the lapse of the period of limitation prescribed, the right of the Department to assess an assessee gets extinguished and this extension confers a very valuable right on the assessee. 23. If one is to go by the aforesaid dicta, with which we entirely agree, the same shall apply in the instant cases as well. In the context of the Punjab Act, it can be said that extension of time for assessment has the effect of enlarging the period of limitation and, therefore, once the period of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exercised before the normal period of assessment expires. On the aforesaid interpretation, other arguments of Mr Ganguli lose all significance. (emphasis supplied) 8. The provision contained in Section 27 (9) of the Chhattisgarh Act is not parimateria with the provision contained in Section 11 (10) of the Punjab Act yet the essence of these provisions are the same. 9. As a matter of fact, in para 20 of the Shreyans (supra), the Supreme Court also considered a similar provision of Karnataka Act which was couched in a different language but was essentially in the same terms as in Punjab Act, therefore, the proposition arrived at by the Supreme Court would apply with full force in the present case also because in Chhattisgarh Act also pow ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
