TaxTMI 
TaxTMI 
1991 (3) TMI 356
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....es of calf skin, and after showing an average purchase rate of Rs. 3 per piece, had submitted the return. The Joint Commercial Tax Officer, Dindigul, assessed the assessee by the order dated 31st of July, 1977, on the estimated purchase value of 6,586 pieces of raw calf skin sold by the assessee to non-registered dealers and the purchase value was determined and assessed at the rate of 3 per cent for Rs. 18,240. The successor to the Joint Commercial Tax Officer apparently reopened the assessment proceedings already concluded under section 12 of the Tamil Nadu General Sales Tax Act, 1959, hereinafter referred to as "the Act", and fixed the purchase turnover at Rs. 1,77,822 as against the turnover of Rs. 18,240 fixed in the original assessmen....
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....ax payable on such turnover after making such enquiry as it may consider necessary and after giving the dealer a reasonable opportunity to show cause against such assessment. (b) Where, for any reason, the whole or any part of the turnover of business of a dealer has been assessed at a rate lower than the rate at which it is assessable, the assessing authority may, at any time within a period of five years from the expiry of the year to which the tax relates, reassess the tax due after making such enquiry as it may consider necessary and after giving the dealer a reasonable opportunity to show cause against such reassessment." 5.. On a plain reading of section 16 it is obvious that section 16(1)(a) has limited application. It would co....
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....thority itself. The Legislature, with a view to remove any doubts and difficulties with regard to matters where there has been under-assessment, assessment, introduced in the Act section 12-A which specifically provides as follows: "12-A. Assessment of sales shown in accounts at low prices.-(1) If the assessing authority is satisfied that a dealer has, with a view to evade the payment of tax, shown in his accounts sales or purchases of any goods, at prices which are abnormally low compared to the prevailing market price of such goods, it may, at any time within a period of five years from the expiry of the year to which the tax relates, assess or reassess the dealer to the best of its judgment on the turnover of such sales or purchases a....
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.... same goods. If the difference in prices, exclusive of the sales tax element, is more than fifteen per cent, the assessing authority shall examine the reasons for the variation, taking into account the relationship between the parties to the transactions, the charges for after-sale services, packaging, transport and other expenses incurred by subsequent sellers which add to the cost of the goods at each stage of sale by successive dealers. The assessing authority shall also examine whether there is such difference in the price charged on the sales of the same goods to different customers and whether the goods are made available to all distributors or other customers in unlimited quantities and at the same prices. After making due allowance ....