AKBARALI AMANATALI Vs. ASSISTANT COMMERCIAL TAXES OFFICER C WARD PALI

JUDGEMENT

(1.) THIS is a. petition under Article 226 of the Constitution filed by M/s. Akbarali Amanatali, Pali, seeking to quash three orders of reassessment dated 16. 11. 1966 under sec. 12 (1) of the Rajasthan Sales Tax Act passed by the Assistant Commercial Taxes Officer, 'c' Ward, Pali.

(2.) THE petitioners are a partnership firm engaged in the business of manufacture and sale of bangles and are registered as a dealer under the Rajasthan Sales Tax Act, 1955, hereinafter referred as 'the Act'. THE firm has been granted an exemption certificate under sec. 4 (3) of the Act by virtue of Notification No. F. 21 (7)SR/55 dated 14. 5. 1955, which reads : " (11) Bangles made of lac, Topali (of coconut), Xylonite or Catalin tube. "

(3.) UNDER Sec. 34 of the Income-Tax Act, 1961, the Income-Tax Officer should have 'reason to believe' that the income chargeable to tax has escaped assessment for relevant year, or has been underassessed, or assessed at too low a rate, etc. The words 'reason to believe' impose condition to the exercise of the powers to make a re-assessment under sec. 34. Unlike sec. 34 of the Income-tax Act, sec. 12 (1) of the Rajasthan Sales Tax Act, 1954 uses the words 'if for any reason, the whole or any part of any business of a dealer has escaped assessment to tax, or has been assessed at too low a rate in any year, etc.