Assessment of Tax on the Turnover Not Assessed During the Year

Assessment of tax on the turnover not assessed during the year (1) If the assessing authority has reason to believe that the whole or any part of the turnover of 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 reassess the dealer or 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 shall be deemed to prevent the assessing authority from making an assessment or full assessment to the best of its judgement.
Explanation II: For the purposes of this section and of section 22, “assessing authority” means the officer or authority who passed the earlier assessment order, if any, and includes the officer or authority having jurisdiction for the time being to assess the dealer.
Explanation III: Notwithstanding the issuance of notice under this sub-section, where an order of assessment or re-assessment is in existence from before the issuance of such notice, it shall continue to be effective as such, until varied by an order of assessment or re-assessment made under this section in pursuance of such notice.
(2) Except as otherwise provided in this section, no order of assessment or re-assessment under any provision of this Act for any assessment year shall be made after the expiration of two years from the end of such year or March 31,1998 whichever is later.
PROVIDED that if the Commissioner on his own on the basis of reasons recorded 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 after the expiration of the period aforesaid but not after the expiration of [six years from the end of such year or March 31st, 2002,] whichever is latter, notwithstanding that such assessment or reassessment may involve a change of opinion:
PROVIDED FURTHER that the assessment or re-assessment for the assessment year 1987-88 may be made by March 31,1993:
PROVIDED ALSO that if the eligibility certificate granted under section 4A has been amended or cancelled by the Commissioner under sub-section (3) of section 4A, the order of assessment or re-assessment may be made within one year from the date of receipt by the assessing authority of the copy of the order amending or cancelling the aforesaid certificate or by March 31,1995, whichever is later:
PROVIDED ALSO that the assessment or re-assessment for the assessment year 1989-90 may be made by March 31,1995.
[Provided also that the assessment or re-assessment for the Assessment Year 2005-06 may be made by March 31, 2009.]
(3) Where the notice under sub-section (1) for any assessment year has been served within the period specified in sub-section (2), the order of assessment or re-assessment in pursuance thereof may be made within six months, after the expiration of such period.
(4) If an order of assessment is set aside and the case is remanded for re-assessment by any authority under the provisions of this Act or by a competent court, the order of re-assessment may be made within one year from the date of receipt by the assessing authority of the copy of the order remanding the case, or by December 31, 1982, whichever is later.
(4A) If an order of assessment is quashed on the ground of want of jurisdiction of the assessing authority or any other like ground, by any competent authority or court, fresh order of assessment may be made by the assessing authority having jurisdiction within one year from the date of receipt by the assessing authority whose order is so quashed, of the copy of order of such authority or court or by March 31,1993 whichever is later.
(5) If an order of assessment or re-assessment for any assessment year is set aside under section 30, a fresh order of assessment or re-assessment for that year may be made within six months from the date on which such earlier order was set aside.
(5A) If an ex parte order of assessment or re-assessment or penalty passed against a sick unit is set aside by the State Government by an order under sub-section (2) of section 38, a fresh order of assessment or re-assessment or penalty, as the case may be, for that year may be made within one year from the date of receipt of such order of the State Government by the assessing authority concerned.
(6) Where the proceedings for assessment or re-assessment for any assessment year remain stayed under the orders of any court or authority, the period commencing on the date of stay order and ending with the date of receipt by the assessing authority concerned of the order vacating the stay, shall be excluded in computing the period of limitation provided in this section:
PROVIDED that if in so computing, the period of limitation comes to less than six months, such assessment or re-assessment may be made within six months from the date of receipt by the assessing authority of the order vacating the stay.
(6A) The period during which any appeal or other proceedings in respect of any other assessment or re-assessment or any other matter of assessee remained pending before the High Court or the Supreme Court, involving a question of law having a direct bearing on the assessment or re-assessment in question, shall be excluded in computing the period of limitation provided in this section.
(7) Where in the assessment or re-assessment of a dealer for any assessment year, any assessing authority—
(a) has included any turnover and any superior authority or court has, in exercise of the powers lawfully vested in it, held such turnover to relate to the assessment—
(i) of such dealer for any other assessment year, or (ii) of such dealer under the Central Sales Tax Act, 1956, or (iii) of any other dealer, whether under this Act, or under the Central Sales Tax Act, 1956.
(b) has not included any turnover on the ground that it relates to assessment under the Central Sales Tax Act, 1956 and any superior authority or court has, in exercise of the powers lawfully vested in it, held such turnover to relate to the assessment of that dealer under this Act, whether for such assessment year or any other assessment year—
then nothing contained in this section limiting the time shall apply to assessment or re-assessment whether under this Act or under the Central Sales Tax Act, 1956 of such dealer or such other dealer, relating to such assessment year, or such other assessment year, as the case may be.