Reassessment notice must disclose reopening material or grounds, or it denies an effective opportunity to object.

A reassessment notice under section 11-A of the Punjab General Sales Tax Act is invalid if it does not disclose the material or grounds on which the assessment is proposed to be reopened. Where reopening is based on additional information, the authority must state that basis in the notice itself so the assessee has a meaningful opportunity to object before reassessment begins. A cryptic notice that withholds the reopening material denies an effective show-cause opportunity and is inconsistent with the principles governing suo motu action. The High Court held that such a notice could not stand and was liable to be quashed.

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Issues: Whether a notice issued for reassessment under section 11-A of the Punjab General Sales Tax Act was valid when it did not disclose the material or grounds on which the assessment was proposed to be reopened.

Analysis: Reopening of an assessment on the basis of additional information requires the authority to disclose the relevant material to the assessee before action is taken. The opportunity to show cause is meaningful only when the assessee is informed in advance of the grounds on which reassessment is proposed. A cryptic notice that does not indicate the basis of reopening deprives the assessee of an effective opportunity to meet the case and is inconsistent with the principles governing suo motu action.

Conclusion: The notice was invalid and liable to be quashed in favour of the assessee.

Final Conclusion: The reassessment notice could not stand because it failed to disclose the basis of the proposed action, and the writ petition succeeded.

Ratio Decidendi: When a taxing authority seeks to reopen an assessment on the basis of additional information, it must disclose that material in the notice itself so that the assessee receives an effective opportunity to object before reassessment is initiated.

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