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

The Gauhati High Court invalidated a reassessment order under Section 40 of the Assam VAT Act, 2003, citing late filing of tax returns and the lapse of the five-year assessment limitation under Section 39. \r

The case involved Assam Gas Company Ltd. and the State of Assam, focusing on a reassessment order for 2009-2010 regarding VAT on transmission charges of Rs.1,03,05,23,595/-. The court agreed with Assam Gas Company that procedural flaws existed, as the assessment was time-barred by March 31, 2015. The petitioner's failure to file timely returns rendered self-assessment incomplete under Section 35. \r

Consequently, Justice Kaushik Goswami quashed the reassessment order and the notice of demand.