1971 (4) TMI 88

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....Act during the pendency of the proceedings started on 24th February, 1959, when the first notice was issued? (2) Whether service of the second notice under section 21 of the Act would extend the period of 4 years for a further period of one year from the date of service of the notice?" It appears to us that these questions are not happily framed. Accordingly we reframe a single question as follows: "Whether on the facts and in the circumstances of the case the assessment made under section 21(1) is validly made within one year of the date of the service of the second notice issued after the service of the first notice under section 21(1) on 24th February, 1959, even though the period of four years from the end of the assessment yea....

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....ity. The revising authority agreed with the appellate authority and dismissed the revision. Hence this reference. Section 21(1) provides: "If 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 to tax for any year, the assessing authority may, after issuing notice to the dealer, and making such enquiry as may be necessary, assess or reassess him to tax.........................." The material part of sub-section (2) of section 21 reads: "No order of assessment under sub-section (1) .........shall be made for any assessment year after the expiry of four years from the end of such year: Provided that where the notice under sub-section (1) has....

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....scaped turnover may be assessed after issuing notice to the dealer. So the issue of a notice to the dealer is a condition precedent to the assessment of the escaped turnover. The first proviso to sub-section (2) says that where "the notice under sub-section (1) has been served within such four years", the assessment may be made within one year of the date of the service of the notice. The expression "the notice under sub-section (1)" refers to the notice which the assessing authority has served on the dealer for the purpose of assessing his escaped turnover. In the present case two notices had been issued. One was served on 24th February, 1959, and the other near about February, 1962. Which of these notices is "the notice under sub-section ....