Reassessment based on high electricity consumption alone fails without positive material showing escapement of turnover

Reassessment under section 21 of the U.P. Trade Tax Act, 1948 could not be sustained on high electricity consumption alone. The Tribunal held that reopening requires positive material showing escapement of turnover, and that a mere mismatch between electricity use and recorded production amounts only to suspicion or conjecture. On that basis, the order of remand was upheld and the tax revision was dismissed, leaving the assessee successful.

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Issues: Whether reassessment proceedings could be sustained under section 21 of the U.P. Trade Tax Act, 1948 on the basis of high electricity consumption and alleged suppressed sales.

Analysis: The reassessment was initiated after the assessing authority noticed that the dealer's electricity consumption did not match the production reflected in the books. The Tribunal held that high consumption of electricity by itself is not enough to justify reopening of assessment. Reassessment under section 21 requires positive material showing escapement of turnover, and not a conclusion drawn merely from conjecture or suspicion.

Conclusion: The reopening of assessment was not justified on the material relied upon, and the revision failed.

Final Conclusion: The order of remand was upheld and the tax revision was dismissed, leaving the assessee successful.

Ratio Decidendi: Reassessment cannot be sustained on mere high electricity consumption alone unless supported by positive material indicating escapement of turnover.

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