Incomplete form F declarations can justify reassessment; initiation is not barred merely as a change of opinion.

Reassessment under section 21 of the U.P. Trade Tax Act can be initiated where the assessing authority has reason to believe that turnover has escaped assessment or that an exemption was wrongly allowed. After the amendment to section 6A of the Central Sales Tax Act, form F is mandatory for claiming stock transfer exemption, and it must be validly and properly completed. As the proposal, notice and reply all showed that some columns in form F were left unfilled, the initiation of reassessment could not be treated as a mere change of opinion. The reassessment notice was therefore sustainable, and interference under article 226 was declined.

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Issues: Whether reassessment under section 21 of the U.P. Trade Tax Act could be initiated on the basis that form F supporting stock transfers was incomplete and exemption had been wrongly allowed, and whether such initiation was barred as a mere change of opinion.

Analysis: Section 21 permits reassessment where the assessing authority has reason to believe that turnover has escaped assessment or deductions or exemptions have been wrongly allowed. After the amendment to section 6A of the Central Sales Tax Act, filing of form F is mandatory for claiming stock transfer exemption, and the form must be valid and properly completed. On the materials before the authority, the proposal for approval specifically alleged that some columns in form F were unfilled, the notice repeated that allegation, and the reply did not dispute it. In these circumstances, the initiation of reassessment could not be characterized as a bare change of opinion.

Conclusion: The reassessment notice was sustainable and the challenge to the initiation of proceedings failed.

Final Conclusion: Interference under article 226 of the Constitution of India was declined and the writ petition was dismissed.

Ratio Decidendi: Where mandatory supporting declarations for a tax exemption are incomplete, the revenue may invoke reassessment powers on the basis of escaped assessment or wrongly allowed exemption, and such action is not defeated merely by a plea of change of opinion.

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