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2015 (12) TMI 311 - ALLAHABAD HIGH COURT

2015 (12) TMI 311 - ALLAHABAD HIGH COURT - TMI - Validity of reassessment proceedings - Section 21 - Evasion of duty - Held that:- Assessing Authority has in its possession certain informations on the basis on which he prima facie has reason to believe that certain turnover of the petitioner has escaped assessment. The grounds on which the proceedings have been initiated are neither irrational nor extraneous in character. - Division Bench of this Court in M/s. Parmarth Steel and Alloys Pvt. Ltd. .....

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ounsel for the petitioner that the goods are exempt, suffice is to say that this question along with all other points that may be raised by the petitioner shall be considered by the Assessing Authority in the reassessment proceedings while passing reassessment order. - Decided against assessee. - Writ Tax No. - 148 of 2013 - Dated:- 8-10-2015 - Hon'ble Tarun Agarwala And Hon'ble Surya Prakash Kesarwani, JJ. For the Petitioner : Swati Agarwal, Amitabh Agarwal,Ravi Kiran Jain, S.R. Pandey .....

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inafter referred to as the 'Act') for the Assessment Years 2004-05 and 2005-06. The petitioner has also prayed for a writ, order or direction in the nature of mandamus commanding respondent no.4 not to initiate reassessment proceeding. The relief sought with respect to Assessment Year 2006-07 and 2007-08 has not been pressed. 3. Learned counsel for the petitioner submits that the proceedings under Section 21 of the Act has been initiated against the petitioner on the basis of a show caus .....

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received by the department clearly indicates that turnover of the petitioner has escaped assessment and as such in view of the law laid down by Hon'ble Supreme Court in the case of The Commissioner of Sales Tax, U.P. Vs. M/s. Bhagwan Industries(P) Ltd., Lucknow (1973)3 SCC 265, the writ petition deserves to be dismissed inasmuch as there was rational basis for the Assessing Authority to form the belief that the whole or any part of the turnover of the petitioner has escaped assessment. He su .....

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ter the notices are issued to the petitioner and he is heard in the matter or given opportunity for that purpose and then the Assessing Authority would decide the matter in the light of the material in his possession as well as any fresh material procured as a result of inquiry which may be considered necessary by him. 6. He also relied on Division Bench judgment of this Court dated 8.5.2013, in the case of Writ Tax No.874 of 2010, M/s. Parmarth Stiil and Alloys Pvt. Ltd. Vs. State of U.P. and o .....

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consequently, after due investigation, the Directorate General of Central Excise Intelligence, New Delhi, issued a show cause notice dated 1.10.2009 to the petitioners relying upon voluminous documents/evidences. Information was also received by the respondents about the materials. Consequently, the Assessing Authority sent a proposal to the higher authority under the proviso to Section 21(2) of the Act for the Assessment Year 2004-05 and 2005-06 (U.P. and Central). Thereupon the respondent no.3 .....

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sing Authority passed ex parte reassessment orders for the Assessment Year 2004-05 (U.P. and Central) and Assessment Year 2005-06 (U.P. and Central) dated 31.3.2011. It appears that petitioner moved recall applications under Section 30 of the Act which were rejected by orders dated 18.1.2012. 10. Aggrieved with the orders the petitioner preferred separate appeals before the Additional Commissioner Grade-II (Appeal), 2nd, Commercial Tax, Kanpur challenging the reassessment orders as well as the o .....

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the facts as briefly noted above, we find that the Assessing Authority has in its possession certain informations on the basis on which he prima facie has reason to believe that certain turnover of the petitioner has escaped assessment. The grounds on which the proceedings have been initiated are neither irrational nor extraneous in character. 13. Considering similar circumstances, Division Bench of this Court in Writ Tax No.874 of 2010, M/s. Parmarth Steel and Alloys Pvt. Ltd. (supra), conside .....

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espondent had escaped assessment to tax for the assessment year 1957-58. Question in the circumstances arises as to what is, the import of the words "reason to believe", as used in the section. In our opinion, these words convey that there, must be some rational basis for the assessing authority to form the belief that the whole or any part of the turnover of a dealer has, for any reason, escaped assessment to tax for some year. If such a basis exists, the assessing authority can proce .....

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