9911796707
TMI Blog2017 (5) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... n five different categories, and depending upon its nature, different rate of tax was allegedly paid. The assessing authority examined such materials brought on record. Accounts furnished, therefore, were accepted and assessment order consequently was passed on 15.3.2012. Reassessment proceedings thereafter were initiated under Section 21 on the ground that commodity in question was under assessed and a higher tax was in fact payable. 2. Since appropriate reply was not furnished pursuant to notice, an order of reassessment was passed imposing liability upon the assessee. An appeal preferred by the assessee failed. However, its contention was allowed in second appeal by the Tribunal on the ground that material relied upon both for assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can always be subjected to reassessment proceedings. Learned Standing Counsel in support of such contention has relied upon judgment of this Court in M/s Kalpana Kala Kendra Vs. The Sales Tax Officer Circle-20, Kanpur, reported in 1989 ATJ 301. Para 17 of the judgment is relied upon, which is extracted for the sake of convenience:- "17. We are not impressed by the argument that the instant case is a case of change of opinion. The change of opinion necessarily postulates that the assessing authority had an occasion to consider the material earlier, and on the same set of facts another opinion was sought to be formed. The question of change of opinion cannot arise where there has been no previous proceeding of assessment in respect of a tur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring for the assessee have placed reliance upon a Division Bench judgment of this Court in M/s Aryaverth Chawal Udyog & Others Vs. State of U.P. & others, reported in 2008 NTN (Vol. 37) 231, decision of this Court in Commissioner, Commercial Tax Vs. Sangam Aromatics, reported in 2012 (49) NTN DX 145, and decision of this Court in Writ Tax No.459 of 2016 (M/s Sterling India Vs. State of U.P. and others), decided on 27.2.2017. Reliance is also placed upon a recent decision of the Apex Court in State of U.P. Vs. Aryaverth Chawl Udyoug and others, reported in (2016) 91 VST 1 (SC), which arose out of judgment reported in 2008 NTN (Vol. 37) 231. Learned counsel submits that facts before the assessing authority both at the time of initial assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in clear terms has held the action taken by assessing authority on such "reason to believe" as arbitrary and bad in law. In case of the same material being present before the assessing authority during both, the assessment proceedings and the issuance of notice for reassessment proceedings, it cannot be said by the assessing authority that "reason to believe" for initiating reassessment is an error discovered in the earlier view taken by it during original assessment proceedings. (See DCM v. State of Rajasthan [1980] 4 SCC 71). 30. The standard of reason exercised by the assessing authority is laid down as that of an honest and prudent person who would act on reasonable grounds and come to a cogent conclusion. The necessary sequitur is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of change in subjective opinion (CIT v. Dinesh Chandra H. Shah, (1972) 3 SCC 231; CIT v. Nawab Mir Barkat Ali Khan Bahadur, (1975) 4 SCC 360)." 7. A Division Bench of this Court in M/s Sterling India (supra) has also relied upon para 31 of the judgment of Apex Court in order to hold that where material before the authorities remains the same, a different view taken during the course of reassessment would be impermissible. Following observations from the judgment of the Division Bench is apt for present purposes, and is reproduced:- "While this Court has consistently held that the simple change of opinion cannot be a ground to initiate re-assessment proceeding, in a recent decision of the Supreme Court in the case of State of U.P. a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
