Reopening of concluded assessment without new material and beyond limitation was held without jurisdiction.

Madras HC held that an assessment based on alleged bill-trader dealings could not be sustained where it amounted to reopening a concluded assessment without new material. The Court applied its earlier ruling on identical facts and held that the statutory power under the Tamil Nadu General Sales Tax Act, 1959 had to be exercised within the prescribed time limit. Proceedings initiated beyond that limit were without jurisdiction and the impugned order was set aside.

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Issues: Whether the impugned assessment order and connected proceedings, based on alleged dealings with bill traders, were sustainable in law and within jurisdiction.

Analysis: The matter was governed by an earlier decision of the same Court on identical facts and on the same set of allegations. The reasoning adopted there held that the attempt was in substance to reopen a concluded assessment without new material, that the statutory power invoked had to be exercised within the limits prescribed by the Tamil Nadu General Sales Tax Act, 1959, and that proceedings beyond the prescribed time limit could not be sustained. The Court noted that the respondent did not dispute the applicability of that legal position.

Conclusion: The impugned order was without jurisdiction and was liable to be set aside. The writ petition was allowed in favour of the assessee.

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