Wednesday 4 October 2017

HC : Dy. Commissioner's 'revision' powers exercisable within limitation; Show cause notices without enquiry, unsustainable

HC quashes show cause notices issued by Deputy Commissioner (CT) in exercise of special powers u/s 32 of Tamil Nadu General Sales Tax Act seeking to re-determine total taxable turnover of assessees, being barred by limitation u/s 16 (dealing with escaped assessment); Notes that Section 32 allowed Dy. Commissioner to suo moto revise / modify assessment order / proceedings if upon enquiry it was found that same were prejudicial to interests of the Revenue; However, such power could not be exercised if – (i) time for appeal against the order had not expired, (ii) order had been made the subject of appeal / revision, and (iii) more than 5 years had expired after passing thereof; HC finds that in present cases, Dy. Commissioner had no new material to come to a conclusion which warranted reopening of assessments and the averments set out in the show cause notices did not reveal any independent enquiry having been made before issuing them; Referring inter alia to Division Bench decision in A. Velayutha Raja, HC holds that impugned show cause notices were wholly without jurisdiction  : Madras HC


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