1981 (1) TMI 223

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.... 44(1) of the M.P. General Sales Tax Act, 1958, hereinafter called the Act, the Board of Revenue has referred the following question of law to this Court for its opinion: "Whether, under the facts and circumstances of the case, the assessment of the dealer could be reopened under section 19(1) and declarations in form XII which had been accepted. originally by the assessing authority could be reje....

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....so issued a notice under section 19(1) of the Act calling upon the assessee to show cause why the deduction of Rs. 2,86,396 allowed under section 2(r)(iv) of the Act should not be disallowed. The assessee objected to the proceedings on the ground that action under section 19(1) of the Act was not called for in the circumstances of the case. The assessing authority, however, rejected that contentio....

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....ed to this Court turns on the true construction of section 19(1) of the Act. That section provides that if for any reason the sale or purchase of goods chargeable to tax under the Act has been under-assessed or has escaped assessment or assessed at a lower rate or any deduction has been wrongly made therefrom, the assessing officer can, at any time within five calendar years from the date of the o....

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.... Officer while initiating proceedings under section 19(1) of the Act is that he must act in good faith as held by the Privy Council in Commissioner of Income-tax, Bengal v. Mahaliram Ramjidas[1940] 8 I.T.R. 442 (P.C.)., while considering a similar provision under the Indian Income-tax Act, 1922. We see no reason to differ from the view taken in these decisions. The Board has not in the instant cas....