LexM/S LARSEN & TOUBRO LTD. versus STATE OF JHARKHAND AND ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
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[2017] 4 S.C.R. 680
M/S LARSEN & TOUBRO LTD.
v.
STATE OF JHARKHAND AND ORS.
(Civil Appeal No. 5390 of2007)
MARCH 21, 2017
[MADAN B. LOKUR AND R. K. AGRAWAL, JJ.)
Tax/Taxation - Bihar Finance Act, 1981 - s.19 - 'Information'
under, if covers ·'audit objection' - Held: The word "information"
c used in s.19 is of the widest amplitude and should not be construed
narrowly - It comprehends not only variety of factors including
information from external sources of any kind but also the discovery
of new facts or information available in the record of assessment
not previously noticed or investigated - On the basis of information
received, if the assessing officer is satisfied that reasonable ground
D exists, then in that case the power of the assessing authority extends
to re-opening of assessment - However; in the present case, the
Assessing Officer was not satisfied on the basis of information given
by the audit team that any of the turnover of the appellant-Company
had escaped assessment so as to invoke s.19 - Re-assessment order
E therefore held to be without jurisdiction and accordingly set aside
- Central Sales Tax Act, 1956 - Bihar Sales Tax Rules - rr. 12, 20 -
Form XIV. IXC.
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Words & Phrases - "Information"- Meaning of in context
of Bihar Finance Act, 1981 - Discussed.
Allowing the appeal, the Court
HELD: 1.1 Sub-Section (1) of Section 19 of Bihar Finance
Act, 1981 ('the State Act') very clearly prescribes that the
competent authority, upon information, if satisfied that reasonable
ground exists to believe that any turnover of a registered dealer
G or a dealer to whom grant of registration certificate has been
refused in respect of any period has, for any reason, escaped
assessment or any turnover of any such dealer assessed under
sub-Section (5) of Section 17 has been under-assessed or assessed
at a rate lower than that which was correctly applicable, may, within
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680
MIS LARSEN & TOUBRO LTD. v. STATE OF JHARKHAND
681
eight years from the date of order of assessment, proceed to
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assess or reassess the amount of tax in respect of such turnover.
[Para 19] [690-E-F]
1.2 According to the Oxford Dictionary, 'information' means
facts told, heard or discovered about somebody/something. The
Law Lexicon describes the term 'information' as the act or B
process of informing, communication or reception of knowledge.
The expression 'information' means instruction or knowledge
derived from an external source concerning facts or parties ur as
to law relating to and/or having a bearing on the assessment. A
mere change of opinion or having second thought about it by the c
competent authority on the same set of facts and materials on
the record does not constitute 'information' for the purposes of
the State Act. But the word "information" used in the aforesaid
Section is of the widest amplitude and should not be construed
narrowly. It comprehends not only variety of factors inclu:ling
information from external sources of any kind but also the D
discovery of new facts or information available in the record of
assessment not previously noticed or investigated. Suppose a
mistake in the original order of assessment is not discovered by
the Assessing Officer, on further scrutiny, if it came to the notice
of another assessor or even by a subordinate or a superior officer,
it would be considered as information disclosed to the incumbent
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officer. If the mistake itself is not extraneous to the record and
the informant gathered the information from the record, it will be
information in his possession within the meaning of Section 19 of
the State Act. In such cases of obvious mistakes apparent on the
face of the record of assessment, that record itself can be a source
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of information, if that information leads w a discovery or belief
that there has been an escape of assessment or under-assessment
or wrong assessment. [Para 21] [691-D-H; 692-A-B]
1.3 Assessment proceedings can be reopened if the audit
objection points out the factual information already available in
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the records and that it was overlooked or not taken into
consideration. Similarly, if audit points out some information or
facts available outside the record or any arithmetical mistake,
assessment can be re-opened. [Para 22] (692-C]
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682
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SUPREME COURT REPORTS
(2017] 4 S.C.R.
Commissioner of Income Tax v. P. V.S. Beedies Pvt. Ltd.
(1998) 9 sec 272 : [1998] 2 Suppl. SCR 547;
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