https://www.taxtmi.com/caselaws?id=434675 Prior recorded reasons were mandatory before initiating proceedings under Section 35(7) of the JVAT Act, and that jurisdictional safeguard had to be met before reassessment could proceed. The High Court treated the requirement as especially strict because the provision is penal in character and can be invoked only on tangible material showing under-invoicing or sale at a higher price than reflected in invoices. As no recorded satisfaction before invocation was shown, the reassessment and consequent penalty under Section 40(1) could not be sustained. The tribunal order was therefore set aside and the matter remanded to the assessing authority for fresh consideration in accordance with law. en-us Tue, 21 Feb 2023 00:00:00 +0530 Thu, 02 Mar 2023 08:15:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=434675 Prior recorded reasons were mandatory before initiating proceedings under Section 35(7) of the JVAT Act, and that jurisdictional safeguard had to be met before reassessment could proceed. The High Court treated the requirement as especially strict because the provision is penal in character and can be invoked only on tangible material showing under-invoicing or sale at a higher price than reflected in invoices. As no recorded satisfaction before invocation was shown, the reassessment and consequent penalty under Section 40(1) could not be sustained. The tribunal order was therefore set aside and the matter remanded to the assessing authority for fresh consideration in accordance with law. Case-Laws VAT and Sales Tax Tue, 21 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=434675