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TMI Blog2017 (6) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... rity namely, the Joint Commissioner of Commercial Taxes (Appeals), Dharwad Division, Hubballi, on 08th June 2012, as well as the re-assessment order under Section 39(1) of the Karnataka Value Added Tax Act, 2003 (for short 'the Act '), passed by the assessing authority, namely the Deputy Commissioner of Commercial Taxes (Audit), Haveri, on 30th June 2009, by which the additional tax, including penalty and interest of Rs. 10,847/- were imposed by the Assessing Authority for the assessment period of September 2007. 2. The assessee is a dealer of fireworks and matches and on account of survey conducted at his business place on 19th September 2007 being 5th day of Ganesha Festival, it was found that he had not issued regular invoices for the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he course of survey under Section 52 of the Act and that tax liability having been paid with compounding fee under Sections 79 & 82 of the Act, whether on the basis of same material, without any other further evidence against the assessee, the assessing authority can undertake the reassessment proceedings under Section 39 of the Act for the same period?" 6. The learned counsel for the assessee, Mr. Abbigeri Kalleshappa for Sri. K.A. Shanthaveeranna, submitted before us that the assessing authority in the course of survey conducted on 19th September 2007 had found certain loose slips and the assessee could not issue regular invoices on account of heavy rush of customers on Ganesha Festival and he being a seller of fire crackers, maintained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (81) Kar.L.J. 1 (HC) (DB), wherein this Court held that merely because a higher official visited the place of business, there is no obligation to proceed under Section 52(1)(l) of the Act and on the information furnished by such officer, the Assessing Authority, under Section 39(1) of the Act can proceed to pass the reassessment order. 9. Having heard the learned counsels for the parties, we are of the opinion that the judgment relied upon by the learned counsel for the Revenue is not applicable to the present case. It is true that on the basis of the information and evidence gathered in the course of survey under Section 52 of the Act, the assessing authority has option to proceed under Section 39 of the Act, but it cannot do so once the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion of sales or purchases made by him. We do not find any such material in the present case. Mere affirmation of the reassessment order passed by the assessing authority under Section 39 of the Act by the two higher appellate forums does not deter us from holding that the very initiation of the reassessment proceedings without any further incriminating material was illegal. 12. Therefore, the present Revision Petition filed by the assessee deserves to be allowed and the same is accordingly allowed and answering the aforesaid question of law in favour of the assessee, we set aside the impugned orders passed by all the three authorities below under Section 39 of the Act for the assessment period in question. No order as to costs X X X X Extracts X X X X X X X X Extracts X X X X
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