9911796707
TMI Blog1978 (11) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order was passed by the Sales Tax Officer determining the gross turnover at Rs. 4,18,429 though according to the return it was Rs. 5,09,027. According to the return, the taxable turnover was Rs. 5,60,600, but the Sales Tax Officer determined the taxable turnover at Rs. 2,51,398. Thus, the assessing authority determined the gross and taxable turnovers substantially less than the figures shown in the return filed by the assessee. Later on, the Sales Tax Officer issued a notice under section 19(1) of the Act for reassessment. The explanation offered by the assessee was not accepted and the Sales Tax Officer reassessed the tax payable by the assessee. On appeal, the order passed by the Sales Tax Officer was set aside and the case wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed at a lower rate or any deduction has been wrongly made therefrom, the Commissioner may, at any time within five calendar years from the date of order of assessment after giving the dealer a reasonable opportunity of being heard and after making such enquiry as he considers necessary, proceed, in such manner as may be prescribed, to reassess the tax payable by such dealer and the Commissioner may direct that the dealer shall pay, by way of penalty in addition to the amount of tax so assessed, a sum not exceeding that amount: Provided that in the case of an assessment made under any Act repealed by section 52, the period for reassessment on the ground of under-assessment, escapement or wrong deduction shall be as provided in such Act n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to enable the Income-tax Officer to initiate proceedings under section 34 of the Indian Income-tax Act, 1922, it was enough that the Incometax Officer on the information which he had before him and in good faith considered that he had good ground for believing that the assessee's profits had for some reason escaped assessment or had been assessed at too low a rate. The Tribunal, therefore, erred, in our opinion, in holding that the provisions of section 19(1) could be invoked only if in the original order there could be shown some bona fide mistake. The scope of the expression "escaped" occurring in section 19(1) of the Act came up for consideration before us in Commissioner of Sales Tax, M.P. v. Jeewa Khan[1978] 42 S.T.C. 95. After referr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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