Section 20: Tax Officer May Assess Tax

1) A Tax Officer may make an assessment in any of the following circumstances:

(a) If the description of tax is not submitted within the time limit;

(b) If an incomplete or erroneous tax description is filed;

(c) If a fraudulent tax description is filed;

(d) If the Tax Officer has a reason to believe that the amount of tax was understated or otherwise incorrect.

(e) If the Tax Officer has a reason to believe that the price of supply is under-invoiced.

(f) If supplied in a group company making under invoicing,

(g) If transaction is made by such a person without registration that has to be registered,

(h) If sold without issuing invoice,

(i) If tax is collected by an unregistered person,

(j) If tax is not paid pursuant to sub-section (2) or (3) of Section 8,

(k) If there exists the situation referred to in sub section (4) of Section 17.

2) In assessing the tax pursuant to Sub-section (1), the assessment may be made on any or the entire following basis:

(a) Proof of transaction;

(b) A tax audit report on transactions submitted by the concerned Tax Officer;

(c) Tax paid on a similar transaction by another person.

3) Notwithstanding anything contained in Sub-section (2), the burden of proof shall lie with the concerned Tax Officer in assessing tax in accordance with the above provisions.

4) In assessing the tax pursuant to Sub-section (1), the assessment shall made within Four years from the earliest date that a tax description was filed or the tax was due, which occurs earlier. If the stipulated time expires, the description so filed shall ipso facto be considered to be true and valid.

4a) Notwithstanding anything contained in sub-section (4), the Department may order for reassessment of the tax at any time if any person has evaded tax by preparing a fake account or invoice or other document or with fraudulent act.

4b) Notwithstanding anything contained in sub-section (4), the tax officer may not amend the tax, in a case of the amendment of the assessed tax or reduced the assessed tax by the Revenue Tribunal or other courts having jurisdiction, to the extent of such amendment or deduction.

Provided that it shall not be considered as obstruction for tax assessment in the case of re assessment order made by such body.

5) In assessing tax pursuant to this Section, the tax officer shall have to give a period of fifteen days to the concerned person to submit his/her clarification.