2011 (1) TMI 1263

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....hin a period of eight years from the expiry of the financial year. There is no dispute in this regard. Learned Standing Counsel produced the record which shows that the notice has been served on March 26, 1999. The assessment order, however, has been passed on September 30, 1999 after expiry of eight years. The Tribunal has set aside the assessment order on the ground that it was passed beyond the period of eight years and, therefore, it was barred by limitation. Tribunal has held that under section 21(2) of the Act the assessment order should have been passed within a period of eight years. The learned standing counsel submitted that the Tribunal failed to look into sub-section (3) of section 21 of the Act which provides that if the notic....

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....cer or authority having jurisdiction for the time being to assess the dealer. Explanation III.-Notwithstanding the issuance of notice under this sub-section, where an order of assessment or reassessment is in existence from before the issuance of such notice it shall continue to be effective as such, until varied by an order of assessment or reassessment made under this section in pursuance of such notice. (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 on the basis of reasons recorded b....