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TMI Blog1969 (8) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... final order of assessment can be made. Then the taxing authorities would certainly be debarred from completing the assessment beyond the period prescribed as was the case in Sub-section (3) of section 34 of the Income-tax Act, 1922; but such is not the case here and we would hold that the assessment proceedings relating to the year 1962-63 were within time. - Civil Appeal No. 1232 of 1969, & 46 of 1967 - - - Dated:- 13-8-1969 - SHAH J.C., RAMASWAMI V. AND GROVER A.N. JJ. M.R.K. Pillai, Advocate, for the appellant. T.A. Ramachandran, Advocate, for the respondent. -------------------------------------------------- The judgment of the court was delivered by GROVER, J. -This is an appeal by special leave from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent could not be completed. The learned judge felt that it was owing to the orders of the court that the sales tax authorities had been prevented from completing the assessment within the time. While disposing of the writ petition it was observed that the sales tax authorities would be at liberty to complete the proceedings initiated by the notice within the period of 59 days at the expiry of which the period prescribed by rule 33 was to expire. The respondent preferred an appeal to a Division Bench which set aside the direction granting 59 days extension for completing the assessment on the ground that the same was not justified under the law. Counsel for the appellant has confined the appeal only to the proceedings relating to the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised subsequently even after the expiry of the prescribed period no question of limitation would arise. In State of Punjab v. Murlidhar Mahabir Parshad [1968] 21 S.T.C. 29., the question of law was whether on a proper interpretation of sub-sections (4) and (5) of section 11 of the Punjab Act the period of limitation was three years for making the assessment from the last date on which the return was to be filed or whether the order of assessment was valid even after it was made after a period of three years provided the necessary notice had been issued within that period. The aforesaid provision of the Punjab Act may be read: "11. (4) If a registered dealer, having furnished returns in respect of a period, fails to comply with the terms o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax payable or levy the licence fee in such turnover after issuing a notice to the dealer or licensee and after making such enquiry as he considers necessary." Now in view of the previous decisions the principle is firmly established that assessment proceedings under the Sales Tax Act must be held to be pending from the time the proceedings are initiated until they are terminated by a final order of assessment. The distinguishing feature on which emphasis has been laid by the counsel for the respondent is that the language employed in rule 33 is such as to lead to only one conclusion that the final determination of the turnover which has escaped assessment and the assessment of the tax have to be done within three years. It is pointed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions in sales tax statute must be followed as otherwise the purpose of a provision like rule 33 can be completely defeated by taking certain collateral proceedings and obtaining a stay order as was done in the present case or by unduly delaying assessment proceedings beyond a period of three years. It is undoubtedly open to the Legislature or the rule-making authority to make its intention quite clear that on the expiry of a specified period no final order of assessment can be made. Then the taxing authorities would certainly be debarred from completing the assessment beyond the period prescribed as was the case in Sub-section (3) of section 34 of the Income-tax Act, 1922; but such is not the case here and we would hold that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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