39. Re-assessment of tax
(1) Where the prescribed authority has grounds to believe that any return furnished which is deemed as assessed or any assessment issued under Section 38 understates the correct tax liability of the dealer, it, -
(a) may, based on any information available, re-assess, to the best of its judgement, the additional tax payable and also impose any penalty under sub-section (2) or sub section (5) of section 72 and demand payment of any interest ; and
(b) shall issue a notice of re- assessment to the dealer demanding that the tax shall be paid within thirty days of the date of service of the notice after giving the dealer the opportunity of showing cause against such re-assessment in writing.
(2) Where after making a re-assessment under this Section,
(a) any further evidence comes to the notice of the prescribed authority,
(b) if the prescribed authority has reason to believe that the whole or any part of the turnover of a dealer in respect of any tax period has escaped re-assessment to tax, or
(c) tax has been under re-assessed, or
(d) has been re-assessed at a rate lower than the rate at which it is assessable under this act, or
(e) any deductions or exemptions have been wrongly allowed in respect thereof, the prescribed authority may, notwithstanding the fact that whole or part of such escaped turnover was already before the said authority at the time of re-assessment, proceed to make any further re-assessments in addition to such earlier re-assessment.
|