Gauhati HC invalidates Reassessment Order u/s 40 of Assam VAT Act, Citing Late Filing of Returns and Lapse of Five Year Assessment Limitation [Read Order]

The Gauhati High Court invalidated a reassessment order under Section 40 of the Assam VAT Act, 2003 due to late filing of tax returns, rendering self-assessment incomplete under Section 35, and exceeding the five-year assessment limitation under Section 39. \r

Assam Gas Company Ltd. challenged the order concerning the assessment year 2009-2010, disputing procedural flaws. The petitioner argued the assessment was time-barred as an audit assessment under Section 36. The court found merit in the petitioner's claims, emphasizing timely filing and the five-year limitation. \r

As the assessments were time-barred by March 31, 2015, the reassessment under Section 40 was deemed unlawful. Justice Kaushik Goswami quashed the reassessment order and notice of demand.