TaxTMI 
TaxTMI 
1966 (10) TMI 139
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....thin four years, can In this assessment proceeding under section 21 additional information received after 31st March, 1959, be utilised so as to pass the assessment under section 21 not only based on the initial information of suppression of 36 bales imported but taking into consideration the subsequent information of 350 bales as well which information was received after the expiry of four years?" The material facts are these: The assessee is a cloth dealer carrying on business at Bareilly. The relevant year of assessment is 1954-55. Assessment proceedings under rule 41(5) read with section 7 were completed on the 31st July, 1956. The turnover was determined as a result of a best judgment assessment at Rs. 1,92,000. Thereafter, the asses....
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....tice was issued and he could not have taken into consideration the Information regarding 350 bales, which were received after the period of four years within which the notice under section 21 could have been issued; and (2) that there was no basis for the determination of the turnover at Rs. 4,08,000. The Judge (Appeals) repelled the first contention holding that it was not obligatory upon the Sales Tax Officer to disclose the basis for initiating proceedings under section 21 so long as he had reasonable ground to believe that the turnover had escaped assessment. On the second question, however, the judge (Appeals) considered that it was obligatory upon the Sales Tax Officer to disclose the basis for determining the turnover at Rs. 4,08,000....
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....ad also escaped assessment, then can those items be taken into consideration or not. Section 21 is clear. The only condition for taking action thereunder is that the assessing authority has reason to believe that the whole or any part of the turnover of the dealer has, for any reason, escaped assessment. It does not require a reason to believe that a particular turnover has escaped assessment. As long as some turnover has escaped assessment and the reason entertained by the Sales Tax Officer is reasonable and further that such notice has been issued within the period of four years then there is no bar in taking into consideration other items which may come into his possession after the issue of the notice but before the further period of on....