Revision jurisdiction over assessment permits enhancement where material on record shows escaped turnover and revenue prejudice.

Section 39(2) of the M.P. General Sales Tax Act permits the Commissioner to revise an assessment where the assessing authority has failed to consider material already on record, leaving an order erroneous and prejudicial to revenue. The provision was described as wide enough to support enquiry after hearing the dealer and to authorise enhancement, modification, cancellation of the assessment, or fresh assessment. Applying that principle, the Commissioner could rely on material on record to estimate turnover and enhance the assessment. The Commissioner therefore had jurisdiction to revise the assessment and assess escaped turnover, with the answer rendered in the affirmative against the assessee.

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Issues: Whether the Commissioner had jurisdiction under section 39(2) of the M.P. General Sales Tax Act to revise the assessment and enhance the taxable turnover on the basis of material already on record.

Analysis: The jurisdiction under section 39(2) was held to arise where the assessing authority had failed to consider material available on the record and the resulting order was erroneous and prejudicial to the interests of the revenue. The power conferred by the provision was described as wide enough not only to make or cause to be made such enquiry as the Commissioner deemed necessary after hearing the dealer, but also to pass appropriate orders including enhancement or modification of the assessment or cancellation of the assessment with a direction for fresh assessment. On the facts, the Commissioner acted on material on record and was competent to estimate the turnover and enhance the assessment.

Conclusion: The Commissioner had jurisdiction to revise the assessment and to assess the escaped turnover, and the answer was in the affirmative, against the assessee.

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