Escapement of assessment cannot justify reassessment when full turnover was disclosed and consciously considered as exempt.

Reassessment under section 16(1)(a) of the Tamil Nadu General Sales Tax Act could not be invoked where the assessee had disclosed the full turnover before the original assessing authority and the authority had consciously excluded it as exempt under the circular then in force. Section 16(1)(a) applies only when turnover has escaped assessment because it was not before the assessing authority for consideration at the original stage. As the disputed turnover was part of the disclosed records and had already been considered, the statutory condition for reopening was absent, and the reassessment was not validly initiated.

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Issues: Whether reassessment under section 16(1)(a) of the Tamil Nadu General Sales Tax Act, 1959 could be invoked when the entire turnover had already been disclosed before the original assessing authority and had been excluded on the basis of the prevailing exemption circular.

Analysis: Section 16(1)(a) applies only where income or turnover has escaped assessment, meaning that the assessing authority had no opportunity to consider the item in the original assessment because it was not placed before it. Here, the assessee had produced the complete records and account books, including the turnover relating to the disputed goods, and the original authority had consciously excluded that turnover treating it as exempt under the circular then in force. On those facts, the matter did not involve escapement of assessment, and the precondition for reopening under section 16(1)(a) was absent.

Conclusion: The reassessment was not validly initiated under section 16(1)(a), and the challenge to the appellate orders failed.

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