Reasoned sanction for reassessment is mandatory; a non-speaking order after ignoring objections cannot sustain reopening proceedings.

Sanction for reassessment under section 21(2) of the U.P. Trade Tax Act, 1948 must be preceded by consideration of the dealer's objections and supported by recorded reasons. Where the sanctioning authority rejects a detailed reply without giving reasons, the order is mechanical, non-speaking, and shows lack of application of mind. The sanction order was therefore invalid, and the consequential reassessment notice was quashed. The authority was required to reconsider the matter afresh in accordance with law after hearing the petitioner.

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Issues: Whether the sanction granted for reassessment under section 21(2) of the U.P. Trade Tax Act, 1948, without recording reasons and without dealing with the dealer's objections, was sustainable, and whether the consequential reassessment notice could stand.

Analysis: The petitioner had filed a detailed reply to the show-cause notice, but the sanctioning authority rejected the objections without assigning any reasons. The applicable legal position required that, while considering sanction for reassessment, the authority must afford an opportunity of hearing and must record reasons. An order granting permission to reopen assessment cannot be sustained if it is mechanical and non-speaking, since such an order shows absence of application of mind and violates the requirement of a reasoned decision.

Conclusion: The sanction order was invalid and was set aside, and the consequential notice initiating reassessment proceedings was also quashed.

Final Conclusion: The writ petition succeeded in setting aside the reopening process and required the authority to reconsider the matter afresh in accordance with law after hearing the petitioner.

Ratio Decidendi: Permission to initiate reassessment under section 21(2) of the U.P. Trade Tax Act, 1948 must be supported by recorded reasons and consideration of the dealer's objections; a non-speaking sanction order is unsustainable and invalidates consequential proceedings.

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