Reference of questions of law under sales tax reopening upheld; Tribunal directed to refer issues to the High Court.

The Delhi High Court held that questions challenging the reopening of assessment under the Delhi Sales Tax Act, 1975, and the effect of the original and reassessment orders coexisting for the same year arose from the Tribunal's order and were fit for reference. It accepted that the alleged non-consideration of Enforcement Branch documents and the validity of the reassessment raised referable questions of law. A writ of mandamus was issued directing the Tribunal to make the reference, effectively setting aside the refusal to refer and favouring the assessee.

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Issues: Whether the Tribunal was justified in refusing to refer the proposed questions of law arising from the assessment and reassessment orders under the Delhi Sales Tax Act, 1975.

Analysis: The application sought reference of questions concerning the validity of reopening the assessment on the ground that documents from the Enforcement Branch were left unconsidered and the effect of coexistence of the original assessment and reassessment orders for the same year. The Court found that these questions did arise from the Tribunal's order and were fit to be referred for its opinion. Accordingly, a writ of mandamus was issued directing the Tribunal to make the reference.

Conclusion: The refusal to refer was set aside in substance, and the questions of law were directed to be referred to the High Court, in favour of the assessee.

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