Commissioner to make assessments

(1) The Commissioner shall with all due dispatch assess the tax for the basis year and levy any penalty that may be payable. make (2) Where a person has delivered a return, the Commissioner may– (a) accept the return and make an assessment accordingly; or (b) refuse to accept the return, and, to the best of his judgment, determine the amount of the chargeable income of the person and assess him accordingly. (3) Where a person has not delivered a return and the Commissioner is of the opinion that such person is liable to pay tax, he may, according to the best of his judgment, determine the amount of the chargeable income of such person and assess him accordingly, but such assessment shall not affect any liability otherwise incurred by such person by reason of his failure or neglect to deliver a return. (4) If the Commissioner– (a) has refused to accept the return of income rendered and charged a person to income tax in respect of a sum in excess of the amount of income stated in the return by such person, or (b) discovers that a charge to income tax in respect of a sum in excess of such amount ought to be made, and an assessment is made at any time within the year of assessment or within six years after the expiration thereof, the Commissioner, if satisfied that the act of omission or commission amounts to fraud, art or contrivance, or gross and wilfull neglect on the part of the person assessed or to be assessed, may charge such person, in respect of such excess, 43 additional income tax and surtaxes not exceeding double the amount of the income tax and surtax payable on the excess. (5) If a person has been assessed to income tax and it is discovered that he was assessed on an amount less than the amount on which he should have been assessed the Commissioner shall assess to income tax the additional amount discovered and, unless the person has voluntarily reported the omission or error before the due date for filing of the return of income or before the assessment is made the Commissioner shall in addition charge a sum equal to ten per cent of the additional tax. (6) Any additional tax charged under this section shall be added to the assessment, and shall be collected and levied in a like manner as any tax included in such assessment may be collected and levied. (7) The Commissioner, in any case for reasons which may appear to him sufficient, may, on appeal, remit the additional tax or any part thereof. (8) Liability for tax shall not be affected by the fact that no assessment has been made.