Section 14 in Andhra Pradesh General Sales Tax Act, 1957
14. Assessment of tax.
(1)If the assessing authority is satisfied that any return submitted under section 13 is correct and complete, he shall assess the amount of tax payable by the dealer on the basis thereof, but if the return appears to him to be incorrect or incomplete he shall, after giving the dealer a reasonable opportunity of proving the correctness and completeness of the return submitted by him and making such inquiry as he deems necessary, assess to the best of his judgment, the amount of tax due from the dealer. An assessment under this section shall be made only within a period of three years from the expiry of the year to which the assessment relates.Provided that notwithstanding the amendment made to sub section (1) by the Andhra Pradesh General Sales Tax (Third Amendment) Act, 1995 the period for assessment under this sub section shall continue to be four years for the years preceding to the year 1992-93.Provided further that the period for assessments under this sub-section shall be two years for the assessments relating to the year 1999-2000 and one year for the assessments relating to 2000-2001 and 2001-2002.(1-A) Where the return submitted by a dealer includes the turnover or any of the particulars thereof which would not have been disclosed but for an inspection of accounts, registers or other documents of the dealer made by an officer authorised under this Act before the submission of such return, the assessing authority may, after giving an opportunity to the dealer for making a representation in this behalf, treat such return to be an incorrect or incomplete return within the meaning of sub section (1) and proceed to take action on that basis.(1-B) Central Act 38 of 1949. - Every dealer whose turnover is not less than rupees forty lakhs in a year, shall, within such time as may be prescribed, furnish a certified of audit along with the other statements as may be prescribed duly certificate by a Chartered Accountant within the meaning of the Chartered Accounts Act, 1949; and if any dealer who fails to furnish the same shall be liable for penalty of rupees one lakh or an amount equivalent to one-half per cent of the total turn over relating to the relevant assessment year whichever is less:Provided that before levying such penalty, the assessing authority shall give the dealer a reasonable opportunity of being heard.(2)When making an assessment to the best of judgment under sub section (1), the assessing authority may also direct the dealer to pay in addition to the tax assessed a penalty as specified in sub section (8) on the turnover that was not disclosed by the dealer in his return.(3)Where any dealer liable to tax under this Act -(i)fails to submit return before the date prescribed in that behalf, or(ii)produces the accounts, registers and other documents after inspection or(iii)submits a return subsequent to the date of inspection, the assessing authority may, at any time within a period of six years from the expiry of the year to which assessment relates, after issuing a notice to the dealer and after such enquiry as he considers necessary, assess to the best of his judgment, the amount of tax due from the dealer on his turnover for that year, and may direct the dealer to pay in addition to the tax so assessed penalty as specified in sub section (8).(4)In any of the following events, namely, where the whole or any part of the turnover of a business of a dealer has escaped assessment to tax, or has been under assessed or assessed at a rate lower than the correct rate, or where the licence fee or registration fee has escaped levy or has been levied at a rate lower than the correct rate, the assessing authority may, after issuing a notice to the dealer, and after making such enquiry as he may consider necessary, by order, setting out the grounds therefor (a)determine to the best of his judgment the turnover that has escaped assessment and assess the turnover so determined;(b)assess the correct amount of tax payable on the turnover that has been under assessed;(c)assess at the correct rate the turnover that has been assessed at a lower rate;(cc)assess the correct amount of tax payable, in case where any deduction or exemption has been wrongly allowed;(d)levy the licence fee after determining to the best of his judgment the turnover on which such fee is payable.(e)levy the registration fee that has escaped levy;(f)levy the correct amount of licence fee or registration fee in a case where such fee has been levied at a rate lower than the correct rate. In addition to the tax assessed or fee levied under this sub section, the assessing authority may also direct the dealer to pay a penalty as specified in sub section (8)(4A)Any assessment or levy under sub section (4) shall be made within a period of four years from the date on which any order of assessment or levy was served on the dealer.(4B)Before issuing any direction for the payment of any penalty under sub section (2) sub section (3) or sub section (4), the assessing authority shall give the dealer a reasonable opportunity to explain the omission to disclose the turnover or to furnish correctly any particulars and shall make such enquiry as he considers necessary.(4C)The powers conferred by sub section (4) on the assessing authority may, subject to the same conditions as are applicable in the case of that authority; be exercised also by any of the authorities higher than the assessing authority including the Assistant Commissioner (Intelligence), the Deputy Commissioner and the Joint Commissioner.(5)Where an assessment under this section has been deferred on account of any stay order granted by the Special Appellate Tribunal in any case, or by reason of the fact that an appeal or other proceedings is pending before the Special Appellate Tribunal or the Supreme Court involving a question of law having a direct bearing on the assessment in question, the period during which the stay order was in force or such appeal or proceeding was pending shall be excluded in computing the period of four years or six years as the case may be specified in this section for the purpose of making the assessments.(6)It shall be lawful for the Commissioner of Commercial Taxes to direct, by general or special order, any assessing authority to defer assessment in respect of any class of goods or any class of dealers pending clarification by it of any question referred to it, if such question has a direct bearing on such assessment. The period between the date of such direction and the date on which such clarification has been received shall be excluded in computing the period of four years or six years, as the case may be, specified in this section for the purpose of making the assessment.(7)Where an assessment made under this section has been set aside by any court or other competent authority under this Act for any reason) the period between the date of such assessment and the date on which it has been set aside shall be excluded in computing the period of four years or six years, as the case may be, specified in this section for the purpose of making any fresh assessment.(7A)Where there has been delay on the part of the dealer in the production of accounts and statements for the purpose of making the assessment, in the submission of reply or objections to the notice of assessment.(a)the period between the date of issue of first notice by the assessing authority calling for production of accounts and statements and the date of actual production of such accounts and statements; and(b)the period between the date of issue of notice of assessment and the date of actual submission of reply or objections; shall be excluded in computing the period of four years or six years, as the case may be, specified in this section for the purpose of making the assessment.(8)The penalty leviable under sub section (2), sub section (3) or sub section (4)(a)shall not be less than three times but which may extend to five times the tax or the fee due in a case where the assessing authority is satisfied that the failure of the dealer to disclose the whole or part of the turnover or any other particulars correctly, or to submit the return before the prescribed date, was wilful; and(b)shall not exceed one half of the tax or the fee due in a case where such failure was not wilful;Provided that where such failure occurred due to a bona fide mistake on the part of the dealer, no such penalty shall be levied.Explanation. - The expression assessing authority occurring in this section shall, in relation to licence fee or registration fee, be construed as referring to the licensing or registering authority, as the case may be, under this Act.
