(1) The prescribed authority may, within a period of five years from the end of tax period and in the manner prescribed, scrutinize every return filed under section 29 for the purpose of ascertaining that –
(a) all calculations contained therein are arithmetically accurate,
(b) the output tax, the input tax, the tax payable and interest payable, if any, have been computed correctly and properly,
(c) the rates of tax have been applied correctly,
(d) evidence, as prescribed, has been furnished with regard to payment of tax and interest payable, if any, and
(e) the deductions claimed therein are substantiated in the manner and form prescribed under the Act or under any other law for the time being in force,
(2) If, upon scrutiny under sub-section (1), the prescribed authority discovers any error, he shall serve a notice in the prescribed form on the concerned dealer directing him to-
(a) explain, within thirty days, the reasons for failures to comply with the requirements specified in clauses(a) to (e) of sub-section (1) .
(b) pay, within thirty days, the extra amount of tax along with the interest, if any, payable and furnish the challan evidencing such payment, 3(a) the prescribed authority shall, in a case falling under clause (a) of sub-section
(2) and after giving the dealer a reasonable opportunity to adduce necessary evidence, pass such order in the matter as it may deem fit,
(b) if, pursuant to an order under clause (b) of sub-section (2), any tax or interest is found to be payable by a dealer, a notice in the form and manner prescribed, shall be served upon the dealer requiring him to pay the tax and interest within the time as may be prescribed,
(c) If the prescribed authority is satisfied that the dealer has concealed any sales or purchase or any particulars thereof, with a view to reduce the amount of tax payable by him under this Act or has furnished incorrect statement of his turnover or incorrect particulars of his sales or purchases in the return furnished under of section 29;
The prescribed authority shall, after giving such a dealer an opportunity of being heard, by an order in writing direct that he shall in addition to any tax payable which may be assessed under section 35 or 36 or 38, pay by way of penalty a sum equal to twice the amount of tax on the concealed turnover.
(d) Any tax , interest or penalty payable under clause (b) and (c) shall be deemed to be an arrear of tax within the meaning of section 43.
* Substituted vide Notification No. LG 165/leg dated 04.11.2016)