VAT Assessment by SIT

[Ganeshan Kalyani]

Dear Sir,

I would like to share a situation where generally an assessment is done by a Sales tax officer/ Assistant Commissioner of Sales Tax / Deputy Commissioner of Sales Tax as the case may be. However in a situation where an assessment is carried by a Special Investigation Team (SIT) and a favorable Order is passed. How far is a change that the case can be re-opened in future. Or if the Order is not favorable can the same be Appeal against.

regards,

ganeshan

[Ganeshan Kalyani]

Dear Sir,

I understand the Special Investigation Team (SIT) has the some addition power as compared to the Assessing authority conducting regular assessment on year on year basis. The SIT conducts the search and audit when they doubt about any tax leakage or evasion. I understand that they also will be issuing Assessment Order and the Order also can be appeal against if it unfavorable. I further touch upon Comptroller Audit General (CAG) may also re-open the case if in future they found any reason to believe tax evasion or so. Experts kindly validate my understanding.

regards,

ganeshan

AI Summary

Assessment by Special Investigation Team: SIT-issued orders are appealable and may be reopened on new evidence of evasion. The Special Investigation Team conducts targeted search and audit where tax leakage is suspected and may issue an assessment order; such SIT-issued assessment orders can be challenged by the taxpayer through ordinary appeal channels. Administrative auditors or review bodies may later reopen or re-examine assessments if they discover grounds suggesting tax evasion or irregularity.