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Provided that except as otherwise provided in this sub-section, the acknowledgment of the return shall be deemed to be an intimation under this sub-section in case, either no sum is payable by the person or no refund is due to him:
Provided further that no intimation under this sub-section shall be sent after the expiry of two year from the end of financial year in which the return is filed.
(2) Notwithstanding anything contained in sub-section (1), the Commissioner or the designated officer, as the case may be, may, on his own motion or on the basis of information received by him, order or make an assessment of the tax, payable by a person to the best of his judgement and determine the tax payable by him, where, -
(a) a person fails to file a return under section 26 ; or
(b) there are definite reasons to believe that a return filed by a person is not correct and complete; or
(c) there are reasonable grounds to believe that a person is liable to pay tax, but has failed to pay the amount due; or
(d) a person has availed input tax credit for which he is not eligible; or
(e) provisional assessment is framed.
(3) The Commissioner on his own motion or on the basis of information received by him may, by an order in writing, direct the designated officer to make an assessment of the amount of tax payable by any person or any class of persons for such period, as he may specify in his order.
(4) An assessment under sub-section (2) or sub-section (3), may be made within three years after the date when the annual statement was filed or due to be filed, whichever is later:
Provided that where circumstances so warrant, the Commissioner may, by an order in writing, allow assessment of a taxable person or of a registered person after three years, but not later than six years from the date, when annual statement was filed or due to be filed by such person, whichever is later.
(4A) Notwithstanding anything contained in sub-section(4), the assessment under sub-section(2) or sub-section(3), in respect of which annual statement for the assessment year 2005-06 has already been filed, can be made with
(5) Where an assessment is to be made under this section, the designated officer shall, serve a notice to the person to be assessed and such notice shall state-
(a) the grounds for the proposed assessment; and
(b) the time, place and manner for filing objections, if any.
(6) The designated officer, after taking into account all relevant material, which the officer has gathered, shall on the day specified in the notice issued under sub-section (5) or as soon afterwards as may be, after hearing such evidence, as the assessee may produce, by an order in writing, make an assessment determining the sum payable or refund of any sum due to him on the basis of such assessment.
(7) The designated officer may, with the prior permission of the Commissioner, within a period of three years from the date of the assessment order, amend an assessment, made under sub-section (2) or sub-section (3), if he discovers under–assessment of tax, payable by a person for the reason that,-
(a) such a person has committed fraud or wilful neglect; or
(b) such a person has misrepresented facts; or
(c) a part of the turnover has escaped assessment:
Provided that no order amending such assessment, shall be made without affording an opportunity of being heard to the affected person.
(8) The designated officer may, within a period of one year from the date of the assessment order, rectify an assessment, made under sub-section (2), if he discovers that there is a mistake apparent from record:
Provided that no order rectifying such assessment shall be made without affording an opportunity of being heard to the affected person.
(9) An assessment under sub-sections (6) and (7) shall be an assessment made under this Act for all intents and purposes.
(10) No assessment or other proceedings purported to be made, or executed under this Act or the rules made thereunder, shall be, -
(a) quashed or deemed to be void only for the reason that the same were not in the prescribed form; or
(b) affected by reason of a mistake, defect or omission therein:
Provided that such an assessment is substantially in conformity with this Act or according to the intent and meaning of this Act and the rules made thereunder.
(11) When any tax, interest, penalty or any other sum is payable in consequence of any order passed under this Act, the designated officer shall serve upon the person a notice of demand in the prescribed form specifying the sum so payable. |