Broad reassessment power under sales tax law includes escaped turnover from an omitted assessment, subject to good faith.

Section 19(1) of the M.P. General Sales Tax Act was treated as broadly worded, so reassessment was not limited to cases where the original assessment contained a bona fide mistake. The only restraint identified was that the authority must act in good faith when forming the belief that turnover had been under-assessed, escaped assessment, assessed at a lower rate, or wrongly deducted. An erroneous omission to tax part of the assessable turnover could still amount to escaped assessment, even where a return had been filed. Reopening of the assessment was therefore upheld, and the view that jurisdiction to reopen was absent was not sustained.

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Issues: Whether reassessment under section 19(1) of the M.P. General Sales Tax Act, 1958 could be initiated only if the original assessment contained a bona fide mistake, and whether an erroneous failure to assess turnover amounts to escaped assessment.

Analysis: The statutory language of section 19(1), particularly the words "if for any reason", was treated as wide and unqualified. The provision was held not to be controllable by a requirement that the original order must disclose a bona fide mistake. The only restraint recognised was that the authority must act in good faith when forming the belief that turnover had been under-assessed, escaped assessment, assessed at a lower rate, or wrongly deducted. Relying on the analogous reassessment provision under section 34 of the Indian Income-tax Act, 1922, the Court held that even where a return had been filed, an erroneous omission to tax part of the assessable turnover could still amount to escaped assessment.

Conclusion: Reassessment under section 19(1) was not confined to cases of bona fide mistake in the original assessment, and the reopening of the assessment was valid.

Final Conclusion: The question referred was answered in favour of the revenue, and the Tribunal's view that jurisdiction to reopen was lacking was not sustained.

Ratio Decidendi: Where the reassessment provision uses broad language such as "for any reason", escaped assessment includes an erroneous omission in an otherwise completed assessment, provided the authority acts in good faith.

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