(1) If the prescribed authority is satisfied that the return duly filed by any employer is correct and complete, he shall accept the return.
(2) (a) If the prescribed authority is not satisfied that the return duly filed is correct and complete, he shall serve upon the employer, a notice requiring him, on a date specified in the notice, to attend in person, or through an authorised representative, and to produce accounts and papers in support of the return.
(b) The prescribed authority shall, on examination of accounts and papers, assess the amount of tax payable by the employer.
(c) If the employer fails to comply with the terms of the notice, or if in the opinion of the prescribed authority the accounts and papers are incorrect or incomplete or unreliable, the said authority shall, after such inquiry as he deems fit, or otherwise, assess the tax due to the best of his judgement.
(3) The amount of tax due from any employer shall be assessed separately for each year during which he was liable to pay tax:
Provided that, the prescribed authority may, subject to such conditions as may be prescribed and for reasons to be recorded in writing, assess the tax due from any employer during any part of a year:
Provided further that, where a registered employer fails to furnish a return for any part of a year, the prescribed authority may, if it think fit, assess the tax due from such employer separately for different parts of such year.
(4) If an employer has failed to get himself registered or being registered has failed to file any return, the prescribed authority shall, after giving the employer a reasonable opportunity of being heard and after holding such inquiry as he deems fit, or otherwise, pass an order assessing the amount of tax due to the best of his judgement.
(5) The amount of tax so assessed shall be paid within fifteen days from the receipt of the notice of demand from the prescribed authority.
(6) No order under this section shall be passed after lapse of two years from the end of the year in respect of or part of which the assessment is made: Provided that, in case of an order of stay on proceedings by appellate authority or the Tax Board or a competent court, such time limit of two years will extend for the said period of stay on proceedings:
Provided further that, where an assessment order is passed in consequence of or to give effect to any order of an appellate authority or the Tax Board or a competent court, it shall be completed within a year of the communication of such order to the prescribed authority: Provided further that, the Commissioner may for reasons to be recorded in writing, extend in any particular case the said time limit of two years by a period not exceeding one year.