Reassessment for escaped turnover extends beyond concealment and covers erroneous original assessments under the sales tax rules.

Rule 33 of the Travancore-Cochin General Sales Tax Rules was construed broadly to permit reassessment of escaped turnover. The reopening power was not confined to cases of concealment, inadvertence, or failure to notice turnover; the expression "escaped assessment" and the words "any reason" covered any situation where taxable turnover had not been brought to assessment, including an erroneous original assessment made with due care. On that basis, the assessment could be reopened and turnover enhanced, and the revision petitioner was not entitled to relief.

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Issues: Whether rule 33 of the Travancore-Cochin General Sales Tax Rules authorises reopening of an assessment and enhancement of turnover even where the original assessment was made with due care and the turnover had not been concealed.

Analysis: The rule was construed in the light of the expression "escaped assessment" and the opening words "any reason". The Court declined to confine the power of reassessment only to cases of inadvertence, omission, deliberate concealment, or failure to notice turnover. It relied on the broader meaning of "escape" recognised in income-tax jurisprudence under section 34(1)(b) of the Indian Income-tax Act, 1922, and held that the concept is not limited to cases where the turnover was never before the assessing authority. On that approach, reassessment could be made even where the original order was erroneous and part of the taxable turnover had been left out.

Conclusion: Rule 33 does authorise reopening of the assessment in such circumstances, and the revision petitioner was not entitled to relief.

Ratio Decidendi: The power to reopen an assessment for escaped turnover is not confined to cases of concealment or inadvertence, but extends to any case where taxable turnover has not been brought to assessment for any reason.

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