TaxTMI 
TaxTMI 
TaxTMI 
2011 (8) TMI 1016
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....of movable assets to ICFAI, both within the State as well as in the course of inter-State trade. The petitioner filed its returns for March, 2009 in form VAT200. After a notice in form 305A dated April 3, 2008, the first respondent passed an order of assessment dated April 19, 2008, determining the liability of the petitioner both under the provisions of the 2005 Act and 1956 Act. Again by the notice dated May 8, 2009, the first respondent proposed to reassess the petitioner's returns stating that on re-examination of the records furnished by the assessee during the earlier occasion for audit up to December, 2007 and on examination of the records with reference to copies of agreements entered into with the lessee, misclassification of ....
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....sis of which the initial assessment order dated April 19, 2008, was passed. Section 20 of the 2005 Act sets out provisions relating to "returns and self-assessments". Under sub-section (1) every registered dealer is required to submit return or returns, along with proof of payment of tax in such manner, within the time, and to such authority as may be prescribed. Subsection (2) enacts that if a return is filed within the prescribed time and the return so filed is found to be in order, it should be accepted as self-assessment subject to adjustment of any arithmetical error apparent on the face of the said return. Sub-section (3) enables, without prejudice to the powers of the authority prescribed, under sub-section (3) of section 21, scruti....
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....ere any assessment as a result of such scrutiny becomes necessary, such assessment to be made within a period of four years from the end of the period for which the assessment is to be made. Sub-section (6) of section 21 of the 2005 Act, which is the other relevant provision, enables the authority prescribed to reassess, where an assessment was already made under sub-sections (1) to (5) and such assessment understates the correct tax liability of the dealer, within a period of four years from the date of such assessment. Section 32 inheres the power to revise, modify or set aside any order passed or proceedings recorded by any authority, officer or person subordinate to the Commissioner, Additional Commissioner, Joint Commissioner, Deputy....
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....contended by Sri Bhaskar Reddy Vemireddy, the learned counsel for the petitioner, that a substantially similar provision providing for the power of reassessment, in section 14(4) of the Andhra Pradesh General Sales Tax Act, 1957 (for short, "the 1957 Act") was interpreted in several decisions of this court including State of Andhra Pradesh v. Ratna Sree Box Makers [1989] 75 STC 82 (AP), Girdharlal & Company v. State of Andhra Pradesh [1995] 97 STC 442 (AP), Western India Gunnies Private Limited v. State of Andhra Pradesh [2003] 133 STC 14 (AP), Kanakadurga Manure Works v. State of Andhra Pradesh [2003] 133 STC 147 (AP) and the power of reassessment under section 14(4) of the 1957 Act was held to be unavailable unless there was a fresh mater....
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....a justifiable ground to exercise power under that section. In other words, for the exercise of power under section 14(4), reliance should be made not on the material on record but on the material de hors the record which came to the notice of the assessing authority subsequent to the assessment. In short, non-application of mind by the assessing authority to the material on record at the time of assessment, is not a justifiable ground to invoke power under section 14(4) of the Act. . ." It requires to be noticed that a similar view was taken in an earlier decision in State of Andhra Pradesh v. Kedia Vanaspati (P) Ltd. [1994] 95 STC 208 (AP). In Income-tax Officer, Hyderabad v. Nawab Mir Barkat Ali Khan Bahadur [1974] 97 ITR 239 (SC); AIR ....