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IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
Surya Prakash Kesarwani, Jayant Banerji, JJ.
M/s. Parmarth Steel and Alloys Pvt. Ltd. – Petitioner
Versus
State of U.P. and Others – Respondents
Civil Misc. Writ Petition (Tax) Nos. 874, 875 of 2010, 353 of 2012, 13 of 2014
Decided On : 28-03-2022
U.P. Trade Tax Act, 1948 – Section 21 – Cases have been remanded by Hon'ble Supreme Court by order civil appeals – Petitions have been filed challenging notices for reassessment – Held, Cases as briefly noted above leaves no manner of doubt that Assessing Authority was having relevant material in his hands on basis of which he had reason to believe that for Assessment Years in question – Petitioners have evaded tax on undisclosed sales and made huge transactions of purchases and sales out of Books of Account – Permission proviso to Assessment Years in question have been lawfully granted by concerned Additional Commissioner Trade Tax notices been lawfully issued by concerned Assessing Authorities to petitioners for Assessment Years in question – Writ petitions are dismissed.
JUDGMENT :
1. These cases have been remanded by the Hon'ble Supreme Court by order dated 28.8.2019 passed in civil appeals.
2. The aforesaid writ petitions have been filed challenging the notices for reassessment under Section 21(1) of the U.P. Trade Tax Act, 1948.
3. After the aforesaid order of the Hon'ble Supreme Court, these writ petitions were listed on 18.2.2021, 5.3.2021 and 4.3.2022.
4. On 4.3.2022, this Court passed the following order:
List/put up in the additional cause list in the week commencing 21.3.2022 alongwith connected matter.''
5. Today, case has been called out. No one appears for the petitioners to press the writ petitions even in the revised call.
6. In the aforesaid Writ Tax No. 874 of 2010, Writ Tax No. 875 of 2010, Writ Tax No. 353 of 2012 and Writ Tax No. 13 of 2014, the petitioners have prayed for the following relief:
| Relief as prayed in Writ Tax No. 874 of 2010 | Relief as prayed in Writ Tax No. 875 of 2010 | Relief as prayed in Writ Tax No. 353 of 2012 | Relief as prayed in Writ Tax No. 13 of 2014 |
| (i) issue a suitable writ order or direction in the nature of writ of certiorari quashing the permission granted by the opposite party no. 3 on 30.4.2010 for the assessment year 2003-04, 2004-05, 2005-06, 2006-07 and the consequential notice under Section 21(1) for the assessment year 2003-04 (ANNEXURE NO. 10 & 12) of this Writ Petition as well as the notice issued under sub section 1 of section 21 of the Act by the opposite party no. 4 for the assessment year 2007-08 (ANNEXURE NO. 12) to this Writ Petition after summoning the records. | (i) issue a suitable writ order or direction in the nature of writ of certiorari quashing the permission granted by the opposite party no. 3 on 30.4.2010 for the assessment year 2003-04, 2004-05, 2005-06 & 2006-07 and the consequential notice under Section 21(1) for the assessment year 2003-04 (ANNEXURE NO. 11 & 13) of this Writ Petition as well as the notice issued under sub section 1 of section 21 of the Act by the opposite party no. 4 for the assessment year 2007-08 (ANNEXURE NO. 13) to this Writ Petition after summoning the records. | (i) Issue a writ, order or direction in the nature of certiorari quashing the impugned reassessment proceedings for the assessment year 2005-06 under Sub-Section (2) of Section 21 of the Act. | (i) issue a suitable writ order or direction in the nature of certiorari quashing notices dated 19.10.2013 issued by Respondent No.7). |
| (ii) issue a suitable writ order or direction in the nature of mandamus/prohibition directing/prohibiting the Opposite Party No. 4 not to impose and realise tax under section 21 of the Act for the assessment year 2003-04, 2004-05, 2005-06, 2006-07 & 2007-08 during the pendency of this Writ Petition before this Hon'ble Court or till the finalization of proceeding by the Central Excise Department. | (ii) issue a suitable writ order or direction in the nature of mandamus/prohibition directing/prohibiting the Opposite Party No. 4 not to impose and realise tax under section 21 of the Act for the assessment year 2003-04, 2004-05, 2005-06, 2006-07 & 2007-08 during the pendency of this Writ Petition before this Hon'ble Court or till the finalization of proceeding by the Central Excise Department. | (ii) Issue a writ, order or direction in the nature of certiorari quashing the impugned notice dated 12.03.2012 (Annexure No. 1 to the writ petition) issued by the respondent no. 3 and further proceeding pending before respondent no. 3 for assessment year 2005-06 under Sub Section (2) of Section 21 of the Act. | (ii) issue a suitable writ order or direction in the nature of certiorari quashin |
Reassessment under tax law requires fresh evidence and cannot be initiated solely based on a change of opinion or subsequent legal circular.
The challenge to a notice and order for reopening of assessment is maintainable when there is no statutory remedy available under the Act. Non-supply of material forming the basis for reopening the a....
The court upheld the validity of reassessment proceedings under Section 148 based on found incriminating material, emphasizing the importance of valid grounds for reopening assessments.
The 'reason to believe' for reassessment must be based on tangible material with a direct nexus to the formation of the belief, and reassessment cannot be made on a change of opinion.
The court affirmed the validity of reassessment proceedings under the Income Tax Act when there are reasonable grounds to believe that income has escaped assessment, while also emphasizing the signif....
The judgment establishes that the Tribunal is the final authority on factual matters in tax assessments, and the High Court's review is limited to legal questions, emphasizing the importance of docum....
The court established that under the amended Section 148A of the Income Tax Act, the requirement to record 'reason to believe' has been replaced with a subjective decision-making process, allowing fo....
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