TMI Blog2021 (1) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... [ 2014 (8) TMI 922 - ALLAHABAD HIGH COURT ] is distinguishable on the facts of the present case. Perusal of sub-section (7) of Section 29 of the Act, 2008 leaves no manner of doubt that it empowers the Commissioner to grant authorisation and also empowers the Assessing Authority to make assessment or reassessment within a period of eight years after expiry of assessment year to which such assessment or reassessment relates. Sub-section (1) of Section 29 empowers the Assessing Authority to make assessment or reassessment where he has reason to believe that whole or any part of the turnover of a dealer, for any assessment year or part thereof, has escaped assessment to tax or has been under assessed or has been assessed to tax at a rate lower than that at which it is assessable under this Act, or any deductions or exemptions have been wrongly allowed in respect thereof. Thus, where whole of the turnover has escaped assessment on account of not passing an assessment order, the provisions of Section 29(1) of the Act, 2008 can be invoked by the Assessing Authority and the authorisation under sub-section (7) can be granted by the competent authority. It is not incumbent upon the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed assessment to entry tax under the Act, 2007 inasmuch as for reasons mentioned in the impugned order, the assessment order of entry tax under Section 9(4) of the Act, 2007 for the Assessment Year 2012-13 could not be passed. 6. Section 29(1)/(7) of the U.P. VAT Act, 2008 (hereinafter referred to as 'the Act, 2008') are reproduced below: 29. Assessment of tax of turnover escaped from assessment.- (1) If the assessing authority has reason to believe that the whole or any part of the turnover of a dealer, for any assessment year or part thereof, has escaped assessment to tax or has been under assessed or has been assessed to tax at a rate lower than that at which it is assessable under this Act, or any deductions or exemptions have been wrongly allowed in respect thereof, the assessing authority may, after issuing notice to the dealer and making such inquiry as it may consider necessary, assess or re-assess the dealer to tax according to law : Provided that the tax shall be charged at the rate at which it would have been charged had the turnover not escaped assessment or full assessment as the case may be. Explanation I. - Nothing in this sub-section shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rded by the assessing authority, is satisfied that it is just and expedient so to do, authorises the assessing authority in that behalf, such assessment or re-assessment may be made within a period of eight years after expiry of assessment year to which such assessment or re-assessment relates. 8. Thus, the normal period of limitation for assessment or reassessment is three years as provided under Sub-Section (3) of Section 29. Beyond the aforesaid period of limitation, an Assessing Authority can make assessment or reassessment if he is authorised by the Commissioner by order passed under Sub-Section (7) of Section 29, which empowers the Commissioner to issue authorisation for making assessment or reassessment within a period of eight years after expiry of assessment year to which the assessment or reassessment relates. 9. In the present set of facts, there is no dispute that somehow for the Assessment Year 2012-13, assessment under the Act, 2007 escaped to notice of the Assessing Authority. Detailed circumstances leading to the escaping and passing of the assessment order under the Act, 2007 for the Assessment Year 2012-2013 have been mentioned in the impugned order. Thu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll referred hereinafter. 25. With regard to Writ Petition No.706 of 2010, we find that the Assessing Officer had treated enzyme as an unclassified item and had taxed it at the rate of 10% for the assessment year 2006-07 under the U.P. Trade Tax Act. The petitioner filed an appeal, which was allowed and the assessment order was set aside and the matter was remitted to the Assessing Officer to pass a fresh assessment order. During reconsideration of the matter reassessment proceedings was initiated under Section 21 of the Act. 26. In M/s Harbilas Prabhu Dayal Vs. Commissioner of Sales Tax, 1979 UPTC 999 a Full Bench of this Court held that once proceedings are remanded by the appellate authority, the entire matter is at large. 27. We are of the opinion that reassessment proceedings can only take place when there is an assessment order and there is reason to believe that there has been a case of under assessment or escaped assessment. In the event, there is no assessment order there can be no reassessment proceedings. 12. The afore-quoted portion of the judgment in the case of Catalysts (supra) is the foundation of the present writ petition. Perusal of the af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the consequent failure to pay the tax due, vest in the assessing authority the power to make a best judgment assessment both under Section 7(3) and Section 21(1) of the Act. If the circumstances are such as to attract the provisions of Section 21(1), the assessment will be made under that provision, otherwise under Section 7(3). It is not incumbent on the assessing authority to make the assessment first under Section 7(3) and then only to proceed under Section 21 for bringing to tax the turnover not assessed under Section 7(3). The powers contemplated by Section 7(3) and Section 21 are independent of each other and can be resorted to independently according to the material available to the assessing authority. 14. The Full Bench judgment in the case of Jag Mohan Nath (supra) has also been followed by a Division Bench of this court in Commissioner, Sales Tax U.P. vs. Bhuj Singh Mohan Singh, Bulandshahar (S.T.R. No.214 of 1971, decided on 04.09.1974) 1974 Vol.VI Tax Law Diary 134. 15. Perusal of sub-section (7) of Section 29 of the Act, 2008 leaves no manner of doubt that it empowers the Commissioner to grant authorisation and also empowers the Assessing Authority to ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
