(1) Where after a dealer is assessed under section 37, section 38, section 39 or section 40 for any year or part thereof, the Assessing Authority has reason to believe that whole or any part of the turnover of the dealer in respect of any period has :-

(a) escaped assessment;

(b) been under assessed;

(c) been assessed at the rate lower than the rate at which it is assessable;

(d) been wrongly allowed any deduction there from; or

(e) been wrongly allowed any credit therein,-

the Assessing Authority may, serve a notice on the dealer and after giving the dealer a reasonable opportunity of being heard and making such enquiries as it considers necessary, proceed to assess to the best of its judgment, the amount of tax due from the dealer in respect of such turnover, and the provisions of the Act shall, so far as may be, apply accordingly.

(2) No order of assessment and re-assessment shall be made under sub- section (1) after the expiry of five years from the end of the year in respect of which or part of which the tax is assessable or one year from the end of the year in which notice is served, whichever is latter.