DISCOVERY OF NEW FACTS.

[Sadanand Bulbule]

Sir

Section 6-A(3) of the CST Act,1956 provides for further reassessment of interstate stock transfers on the condition that, there shall be ' discovery of new facts'.

The legal position being so, what are the possible new facts that could be discovered by the assessing authority to re-open the concluded original reassessment three years back?

In the absence of any new facts discovered, whether assessing authority can invoke the jurisdiction under Section 6-A(3) of the CST Act?

pl enlighten with judicial rulings, if any.

[DR.MARIAPPAN GOVINDARAJAN]

The discovery of new facts by the assessing authority is according to the facts and circumstances of the cases including the nature of tranasctions. In the absence of any facts newly discovered the assessing authority, in my view, cannot invoke reassessment.

[Sadanand Bulbule]

Thank you so much Sir.🙏

[YAGAY andSUN]

discovery of new facts, means the material facts that had impact on the assessment or in other words, on which basis there was possibility to evade taxable turnover, non deposition of tax collected etc.

AI Summary

Discovery of new facts can permit reassessment of interstate stock transfers when material facts affecting taxable turnover are found. Reassessment under Section 6-A(3) requires discovery of material new facts affecting taxable turnover or indicating tax evasion or non-deposit. Absent such newly discovered material evidence-for example, previously unavailable information about the nature of transactions or concealment-an assessing authority should not reopen a concluded reassessment; the determination depends on the facts and circumstances of each case.