Section 27 in The M.P. Vanijyik Kar Adhiniyam, 1994
27. Assessment of tax.
(1)The amount of tax due from a registered dealer shall be assessed separately for each year :Provided that where such dealer fails to furnish any return by the prescribed date or knowingly furnishes incomplete or incorrect return for any period of any year, the Commissioner may, at any time, assess such dealer to tax for such period :Provided further that the Commissioner may, subject to such conditions as may be prescribed and for reasons to be recorded in writing, assess the tax due from any such dealer at any time for any part of a year.(2)(a)Where a registered dealer,-(i)who is an importer or a manufacturer and whose gross turnover in a year does not exceed rupees ten lacs; or(ii)who is neither an importer nor a manufacturer and whose gross turnover in a year does not exceed rupees forty lacs,(iii)[ who is not covered under clause (i) or clause (ii), the State Government may, by notification specify the limit of yearly gross turnover and thereupon, subject to such restrictions and conditions as may be specified in the notification such dealer shall also be eligible for summary assessment under this section.] [Inserted by M.P. Vanijyik Kar (Sanshodhan) Act, 2003 (32 of 2003) w.e.f. 30-9-2003.]has furnished the return or returns for any year and paid the tax payable according to such return or returns within the prescribed time or has furnished the return or returns for any year after the prescribed time but not later than four months of the expiry of the period to which the return relates and has paid the tax according to such return or returns along with the interest payable under clause (a) of sub-section (4) of Section 26 shall be eligible for summary assessment under this Section.(b)On receipt of the return or returns for any such year from a registered dealer in the manner specified in clause (a) the Commissioner shall, subject to the restrictions and conditions in the rules that may be made for the purpose and without requiring the presence of such dealer and calling for his accounts, accept such return or returns and send an intimation of acceptance to the dealer within such time as may be prescribed. Such intimation of acceptance shall be deemed to be an order of assessment for the purpose of this Act.(c)Notwithstanding the provisions of clause (b), the Commissioner shall direct every year that five per cent of the dealers in each circle eligible for summary assessment under clause (a) to be selected on sample basis in the manner decided by the Commissioner, be assessed under sub-section (4) of sub-section (5), as the case may be.(3)In every other case, the Commissioner shall serve the dealer with a notice appointing a place and day and directing him :(i)to appear in person or by an agent entitled to appear in accordance with the provisions of Section 31; or(ii)to produce evidence or have it produced in support of the returns; or(iii)to produce or cause to be produced any accounts, registers, cash memoranda or other documents as may be considered necessary by the Commissioner for the purpose.(4)After hearing the dealer or his agent and examining the evidence produced in compliance with the requirements of clause (ii) or clause (iii) of sub-section (3) and such further evidence as the Commissioner may require, the Commissioner shall assess him to tax.(5)If a registered dealer-(a)has not furnished returns in respect of any period by the prescribed date; or(b)has knowingly furnished incomplete or incorrect returns for any period; or(c)having furnished such returns fails to comply with any of the terms of a notice issued under sub-section (3); or(d)has not maintained any accounts or the accounts maintained by him are not in accordance with the provisions of sub-section (1) of Section 42 or has not regularly employed any method of accounting or if the method employed is such that in the opinion of the Commissioner assessment cannot properly be made on the basis thereof,the Commissioner shall in the prescribed manner assess the dealer to the best of his judgement.(6)(a)If upon any information which has come into his possession, the Commissioner is satisfied that any dealer, who has been liable to pay tax in respect of any period has failed to apply for registration, the Commissioner shall within [one calender year] [Substituted by Section 6 of MP Commercial Tax (Second Amendment) Act, 1997 (No. 33 of 1997) for the words 'twelve months' w.e.f. 1-9-1997.] from the date of completion of the proceedings under sub-section (1) of Section 6, after giving the dealer a reasonable opportunity of being heard, proceed in such manner as may be prescribed, to assess to the best of his judgement the amount of tax due from the dealer in respect of the whole of such period and the Commissioner may if he is satisfied that the dealer has wilfully failed to apply for registration direct that the dealer shall pay by way of penalty in addition to the amount of tax so assessed, a sum [not less than two times but not exceeding five times] [Substituted by MP Commercial Tax (Second Amendment) Act, 1997 (No. 33 of 1997) for the words 'not exceeding one and half times', w.e.f. 1-9-1997.] of that amount.(b)In respect of periods subsequent to the period referred to in clause (a), the amount of tax due from a dealer referred to in the said clause shall be assessed separately for each year.(7)[ If the Commissioner is satisfied that a dealer has, with a view to evade payment of tax, shown in his accounts sales or purchases of any goods at prices which are abnormally low compared to the prevailing market prices of such goods, the Commissioner may, after making such enquiry as may be necessary and after giving the dealer a reasonable opportunity of being heard, assess or re-assess the dealer to the best of his judgement.] [Substituted by MP Commercial Tax (Amendment) Act, 1999 w.e.f. 1-5-99.](8)The assessment shall be made under this Section-(i)in respect of a registered dealer and a dealer referred to in clause (b) of sub-section (6) within a period of two calender years from the end of the period for which assessment is to be made; and(ii)in respect of a dealer who has failed to apply for registration, within a period of two calender years from the commencement of proceedings under sub-section (6) :Provided that-(a)Where a fresh assessment has to be made to give effect to any finding or direction contained in any order under Section 61, 62 or 70 or to any order of the Civil Court, High Court or Supreme Court, such assessment shall be made within a period of two calender years from the date of the order containing such finding or direction or the order of the Civil Court, High Court or Supreme Court, as the case may be. If for any reason such fresh assessment is not made within the specified period, the Commissioner shall take steps to ensure that assessment is made as expeditiously as possible;(b)Where an order of ex-parte assessment is set aside and case reopended under Section 72 for making a fresh assessment, such fresh assessment shall be made within a period of six calender months from the date of setting aside the ex-parte order of assessment or within the period laid down in clause (i) whichever is later; and(c)Nothing contained in this sub-section shall apply to proceedings initiated under Section 28 or Section 29 or any proceeding other than assessment of tax that may be instituted under any other provisions of this Act.(9)Notwithstanding anything contained in sub-section (8), where assessment proceedings in respect of any dealer relating to any year cannot be completed before the expiry of the period specified therefor in the said sub-section, the State Government, may by notification, for reasons to be recorded in writing, extend the period for the completion of the assessment proceedings in respect of such dealers by such further period as may be specified in such notification.
