TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>No Time Limit for Notice of Demand post Sales Tax Assessment Order. Upheld assessment based on turnover & dishonest conduct.</h1> The court ruled that there is no specific time limit for issuing a notice of demand after an assessment order under the Sales Tax Act, as long as it is ... - Issues:1. Limitation period for issuing notice of demand after assessment2. Validity of assessment based on turnover of Rs. 2,00,000Analysis:The judgment pertains to a case where the Sales Tax Officer estimated the turnover of the assessee for the year 1949-50 at Rs. 6,00,000 due to the non-submission of a return by the assessee. The assessment order was passed on 31st March, 1953, without specifying the date of notice of demand issuance to the assessee. The assessee appealed, leading to a reduction in the estimated turnover to Rs. 2,00,000 by the judge (Appeals). The assessee then applied for revision, which was rejected, prompting the submission of a statement of the case for reference to the High Court.Regarding the first issue of limitation for issuing a notice of demand post-assessment, it was clarified that the Sales Tax Act does not prescribe a specific period for serving a notice of demand after the assessment order. Rule 45 mandates the Sales Tax Officer to send a notice to the dealer for tax payment promptly after assessment, without a defined limitation. The judgment emphasized that as long as the notice of demand is issued within a reasonable time after the assessment order, there is no requirement for it to be served before the expiry of the three-year period. The court cited precedent to support this interpretation, ultimately answering the first question in the negative.On the second issue of the validity of the assessment based on a turnover of Rs. 2,00,000, it was noted that the Sales Tax Officer and judges relied on evidence indicating the assessee's dishonest conduct, including false statements about business activities. The judgment highlighted that a best judgment assessment can be made by inference, provided there is sufficient material to support the inference. In this case, the court found that the facts presented could sustain a finding that the turnover for 1949-50 was at least Rs. 2,00,000. Consequently, the court answered the second question in the affirmative, affirming the validity of the assessment based on the provided evidence.In conclusion, the court directed the dissemination of the judgment copies to the relevant authorities, with the Commissioner of Sales Tax, U.P., entitled to costs of the reference, assessed at Rs. 100, along with a fixed counsel's fee of Rs. 100. The reference was answered accordingly, affirming the assessment based on a turnover of Rs. 2,00,000 for the year in question.
TaxTMI 
TaxTMI 
