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TMI Blog2008 (11) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... ment only on account of the detection of the case by the enforcement wing officials. The assessing officer was not legally justified in reopening the assessment by invoking section 16(1)(a) of the Act. Accordingly, the question of law is answered in favour of the assessee and against the Department. - 1330 of 2006 - - - Dated:- 5-11-2008 - PRABHA SRIDEVAN AND SASIDHARAN K.K. , JJ. ORDER:- The order of the court was made by K.K. SASIDHARAN J. This tax case is at the instance of the assessee, challenging the order dated September 12, 2002, in Appeal No. 397/2002 on the file of the Tamil Nadu Sales Tax Appellate Tribunal. The following substantial question of law arises for consideration: Whether, on the facts and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and three times of the said amount was taken as possible suppression and accordingly, fresh assessment order was passed on June 25, 2001. The assessing authority also imposed penalty under section 12(3)(b) as well as under section 12(3)(c). The assessment order dated June 25, 2001 was taken up in statutory appeal before the Appellate Assistant Commissioner. Before the Appellate Assistant Commissioner, the assessee contended that though there was sales suppression, amounting to Rs. 6,90,260, the same was subsequently shown in the accounts by filing the return in form 12A and the said amount was also taken into consideration while determining the total taxable turnover for the assessment year 1999-2000 as per order dated February 19, 2001 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g for the petitioner contended that hen it was the admitted case of the authorities below that by way of revised returns the entire sales suppression was accounted for by the assessee, the assessing authority was not justified in reopening the assessment invoking the provisions of section 16(1)(a) of the Sales Tax Act. According to the learned senior counsel, in order to initiate proceedings for escaped assessment, the assessing authority must come to a categorical finding that the whole or any part of the turnover of business of the dealer has escaped assessment and as there is nothing to show in the present case about the escaped turnover, the assessing authority was not justified in reopening the assessment. The learned Special Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the dealer themselves, and the same was also taken into consideration by the assessing officer while determining the total and taxable turnover, it was not open to the assessing authority to reopen the assessment by invoking section 16(1)(a) of the Act on the ground that the sales suppression though subsequently accounted for, has been reported to the Department only on account of the detection of the case by the enforcement wing officials. Section 16(1)(a) permits the assessing authority to determine the escaped turnover in case the officer was of the opinion that the whole or any part of the turnover of business of a dealer has escaped assessment to tax. It was open to the appellate authority to take such a course within a period of fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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