Extended reassessment limitation requires proof of concealment or knowingly incorrect returns; prior assessment of facts bars reopening.

Reassessment under section 44 of the Gujarat Sales Tax Act is barred after the normal five-year period unless the extended period under clause (a) is supported by material showing concealment of sales, purchases or material particulars, or a knowingly incorrect declaration or return. Where the assessment record shows that the relevant tax component was already considered and adjusted in the original assessment, the statutory ingredients for extended limitation are not satisfied. On that basis, reassessment beyond the ordinary limitation cannot be sustained and is time barred.

---

---

Issues: Whether reassessment under section 44 of the Gujarat Sales Tax Act, 1969 was barred by limitation and whether the extended period under clause (a) could be invoked on the facts of the case.

Analysis: The reassessment proceedings were initiated beyond five years. Clause (a) of section 44 permits the extended period only where the Commissioner has reason to believe that the dealer concealed sales, purchases or material particulars, or knowingly furnished an incorrect declaration or return. The assessment record showed that the assessing authority had already taken the additional tax component into account and had adjusted the tax liability against the exemption limit. In that background, there was no material showing concealment or furnishing of incorrect particulars, and the ingredients of section 44(a) were not satisfied. The extended period therefore could not be applied.

Conclusion: The reassessment was rightly held to be time barred and the challenge to that finding failed.

Final Conclusion: The appeal was dismissed because the reassessment proceedings were initiated beyond limitation and no basis existed for invoking the extended limitation period.

Ratio Decidendi: The extended reassessment period can be invoked only on a demonstrated basis of concealment or knowingly furnishing incorrect returns or particulars, and where the record itself shows prior consideration of the relevant facts, reassessment beyond the normal limitation is barred.

---