TaxTMI 
TaxTMI 
2010 (4) TMI 971
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.... rice miller for processing and in pursuance of the Government order dated October 1, 2003 it was provided that the petitioner has purchased 2.30 lacs metric tones of paddy. A copy of notification has been filed as annexure 1 to the writ petition. While proceeding to purchase paddy thereafter rice from the mill the petitioner entered into the agreement with the millers. One of the condition provided by the agreement as contained in annexure 3 to the writ petition under clause B of clause 2 is that for selling under the agreement, the miller shall be allowed to retain and appropriate to himself the husk, rice bran polish and kinkee obtained in milling process of the paddy supplied to him under the agreement. It has been stated by petitioner's counsel that under the terms of the agreement, rice bran, rice polish and kinkee are retained by the millers. Assessment of the year 2003-04 was done by the assessing officer, a copy of the assessment order of the year has been filed as annexure 4 to the writ petition. The assessing officer, i.e., the Deputy Commissioner of Trade Tax, Lucknow, had affirmed the statement of account with regard to payment of tax. The assessing officer had aff....
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....ssuing notice to the dealer and making such inquiry, as it may consider necessary, assess or reassess the dealer or tax according to law: Provided that the tax shall be charged at the rate, at which it would have been charged, had the turnover not escaped assessment, or full assessment, as the case may be. Explanation.-I to III . . . (2) Except as otherwise provided in this section, no order of assessment or reassessment under any provision of this Act for any assessment year shall be made after the expiration of two years from the end of such year or March 31, 1998, whichever is later: Provided that if the Commissioner on his own or on the basis of reasons recorded by the assessing authority, is satisfied that it is just and expedient so to do, authorises the assessing authority in that behalf, such assessment or reassessment may be made after the expiration of the period aforesaid, but not after the expiration of (six years from the end of such year or March 31,2002, whichever is later) notwithstanding that such assessment or reassessment may involve a change of opinion: Provided further that the assessment or reassessment for the assessment year 1987-88 may be made by March....
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....exemption provisions in Union of India v. Wood Papers Ltd. [1991] 83 STC 251; AIR 1991 SC 2049, held as under (at page 254 of 83 STC): "13. . . . Literally exemption is freedom from liability, tax or duty. Fiscally it may assume varying shapes, specially in a growing economy. For instance tax holiday to new units, concessional rate of tax to goods or persons for limited period or with the specific objective, etc. That is why its construction, unlike charging provision, has to be tested on different touchstone. In fact an exemption provision is like an exception and on normal principle of construction or interpretation of statutes it is construed strictly either because of legislative intention or on economic justification of inequitable burden or progressive approach of fiscal provisions intended to augment State revenue. But once exception or exemption becomes applicable no rule or principle requires it to be construed strictly. . ." Their Lordships of the honourable Supreme Court in the case of Calcutta Discount Co. Ltd. v. Income-tax Officer [1961] 41 ITR 191 while interpreting the word "reason to believe" observed that for existence of reasons for that belief, the belief mus....
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....he materials produced before him. Such materials must have been gathered during the investigation carried out in terms of section 68E or otherwise. Indisputably, therefore, he must have some materials before him. If no such material had been placed before him, he cannot initiate a proceeding. He cannot issue a show-cause notice on his own ipse dixit. A roving enquiry is not contemplated under the said Act as properties sought to be forfeited must have a direct nexus with the properties illegally acquired. 29.. It is now a trite law that whenever a statute provides for 'reason to believe', either the reasons should appear on the face of the notice or they must be available on the materials which had been placed before him. 31.. In Smt. Kesar Devi v. Union of India [2003] 7 SCC 427 wherein Fatima Mohd. Amin [2003] 7 SCC 436 was distinguished by a Bench of this court, inter alia, opining that no nexus or link between the money of the debt and property sought to be forfeited is required to be established under the scheme of the Act, stating: '10. . . . The condition precedent for issuing a notice by the competent authority under section 6(1) is that he should have reason....