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2017 (7) TMI 1316 - HC - VAT and Sales TaxMaintainability of application - reopening of assessment - change of opinion - Reassessment and for calculating the entry tax payable by the petitioner Company - HELD THAT:- The enunciation of law laid down in the matter of The Commissioner of Income-tax, Gujarat v. M/s. A. Raman and Co. [1967 (7) TMI 2 - SUPREME COURT] by Their Lordships of the Supreme Court has further been followed recently in the matter of Jeans Knit Private Ltd. Bangalore v. Deputy Commissioner of Income Tax Bangalore and it has clearly been held that writ petition filed by the assessee challenging the issuance of notice under Section 148 of the Income Tax Act, 1961 and the reasons which were recorded by the Assessing Officer for reopening the assessment is maintainable. In the present case, the concluded assessment has been sought to be reopened on the basis of amendment made in the definition of "market value" as contained in the Entry Tax Act and thereafter, certain directions have been issued by the Commissioner, Commercial Tax even to reopen the concluded assessment. It is established that reassessment notice was issued by the State Government on the basis of circular issued by the Commercial Tax Officer as the petitioner did not include the royalty aspect for determination of market value on goods for the purpose of payment of entry tax - it is crystal clear that in the instant case, assessment has been made as per law in force and after the definition of "market value" is amended with effect from 1-4-2014, and on that basis, circular has been issued by the State Government, the proceeding for reassessment of concluded assessment was initiated and it was concluded making reassessment and taking the amended definition of "market value" into account, and except the circular of the Commissioner directing opening of reassessment even of concluded assessment on the basis of amendment brought into force from 1-4-2014, there is no fresh/additional material brought on record which can be made basis for reopening the concluded assessment by the assessing officer. The assessing authority has sought to reopen the assessment and made reassessment only on the basis of change of opinion and on the basis of the circular issued by the State Government by which the Commissioner, Commercial Tax has directed to take into account the amount of royalty in calculating the entry tax without being any additional/fresh material brought on record. The circular of the State Government is based on change in law in the definition of "market value" which is only prospective in nature. The SCN issued for reassessment under Section 22 (1) of the Act, 2005 and the final order passed on such reassessment during the pendency of this writ petition, deserve to be quashed - petition allowed.
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