2006 (8) TMI 553

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....ject-matter of appeal and the appellate authority vide order dated April 20, 1995 directed modification of assessment in respect of some of the issues raised and allowed the appeal in part. In the course of revising the assessment in terms of the appellate order, the assessing officer noticed that the rate of tax applied in original assessment on the sales turnover of industrial gases from July 1, 1987 was seven per cent as against the applicable rate of eight per cent. Therefore, notice was issued to the petitioner for modification of assessment in the course of giving effect to the appellate order increasing rate of tax from seven per cent to eight per cent for sales turnover of industrial gases after July 1, 1987. The assessee did not fi....

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....r section 19(1) on any issue not covered by the decision in appeal. There is no bar against simultaneous revision of assessment under section 19(1) along with revision of assessment in terms of order of the appellate authority as provided under section 34(4) of the Act. While limitation for the purpose of revision of assessment under section 19(1) is provided therein, limitation for assessment in terms of the appellate order is provided under section 17(8) which was introduced by Act 13 of 1993 with effect from April 1, 1993. It is not in dispute that the revision of assessment on issues covered by the order in appeal was within the time-frame prescribed under section 17(8) of the Act. However, so far as rate of tax is concerned, the revisi....

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....lete the assessment as if he is making a fresh assessment and limitation in that situation will be as provided under section 17(8) of the Act. It is therefore our view that the Scheme of the Act provides for finality of issues settled in assessment other than those contested in appeal and any process of modification of assessment should be in accordance with the specific powers conferred on various authorities under the statue and such powers should be exercised strictly within the time-limit provided therein. In fact, we feel the assessing officer could have got this mistake corrected through the appellate authority who has authority to enhance the assessment in the course of an appeal or by rectification of his order by referring the matt....