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TMI Blog2017 (5) TMI 1276X X X X Extracts X X X X X X X X Extracts X X X X ..... al was concealed from him. There was no material or any reason to believe on part of the respondent no. 2 for granting permission u/s 29(7) of 'the Act' for reassessing the petitioner for the assessment year 2009-10 - petition allowed - decided in favor of petitioner. - Writ Tax No. 48 of 2017 - - - Dated:- 2-5-2017 - Hon'ble Pankaj Mithal And Hon'ble Vinod Kumar Misra, JJ. For the Petitioner : Shubham Agrawal For the Respondent : C.S.C. ORDER Heard Sri Shubham Agarwal, learned counsel for the petitioner and Sri C.B. Tripathi, learned counsel for the respondents. The pleadings exchanged between the parties have also been perused. The order dated 9.1.2017 passed by the respondent no.2 granting permissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, turn over will increase resulting in higher tax which has escaped assessment. Consequent to the said permission granted for reassessment, the Assessing Officer has issued notice dated 10.1.2017 to the petitioner inviting him to participate in the proceedings. Sri Shubham Agrawal, learned counsel for the petitioner argues that Section 29 of 'the Act' is paramateria with Section 21 of U.P. Trade Tax Act and both the above provisions uses the phrase 'reason to believe' for the purpose of initiating re-assessment proceedings. There was no fresh material before the authorities on the basis of which any 'reason to believe' could have been formulated for the purposes of reassessing the petitioner and as such the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sri Tripathi is not able to show us any provision of law which authorises or which makes the petitioner liable for paying royalty on the purchase of stone, grit and sand purchased by it in further sale. Section 2 (y) of 'the Act' defines the purchase price to mean the amount payable to a seller as consideration for purchase of any goods after deducting certain specified amounts and it specifically lays down that the cost of outward freight or cost of installation etc. charged separately would not be part of it as well as the amount of tax shall not be part of it. It means that the sale consideration shown in the invoice or the amount which the petitioner has paid to the dealer from whom the stone, grit or sand was purchased for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of the above, recording of the satisfaction as to the reason to believe that either of the above four conditions exist are necessary for issuing notice for making reassessment. The aforesaid provision is paramateria with Section 21 of the U.P. Trade Tax Act, 1948. Section 21 of the said Act also uses the phrase 'reason to believe' and it is only on that ground that the assessing authority under this Act has been empowered to reopen the assessment and to reassess the assessee for the purpose of tax in the relevant year. The phrase 'reason to believe' used in Section 21 which is paramateria with Section 29 of 'the Act' has come up for consideration number of times before the law Courts and the law on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appropriate rationale of action taken by the assessing authority in pursuance of such belief. In case of absence of such material, this Court 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 vs. State of Rajasthan [1980] 4 SCC 71. In view of the above decision which is latest and which is passed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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