Reassessment jurisdiction under section 21 of the U.P. Trade Tax Act extends to reopening the assessment on notice

Proceedings initiated under section 21 of the U.P. Trade Tax Act reopen the assessment for reassessment, and the assessing authority must determine the reassessment within that statutory jurisdiction. The legal question was whether reopening extends to the entire assessment or only to escaped turnover; the cited apex court principle treated the original assessment as reopened once notice under section 21 is issued. The matter was therefore required to be reconsidered in light of that principle, and the contrary view that the entire assessment could not be reopened was not finally affirmed.

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Issues: Whether, after proceedings are initiated under section 21 of the U.P. Trade Tax Act, the assessment can be reopened in its entirety or only to the extent of the turnover alleged to have escaped assessment.

Analysis: The dispute turned on the scope of jurisdiction conferred by section 21. The governing principle, as explained by the apex court in the cited decision, is that once notice under section 21 is issued, the original assessment stands reopened for the purpose of reassessment proceedings, and the assessing authority is required to pass an order of assessment or reassessment under that provision. The matter therefore had to be examined with reference to the legal effect of proceedings under section 21 and the extent to which the reassessment jurisdiction operates.

Conclusion: The issue was required to be reconsidered by the Tribunal in the light of the apex court decision, and the view that the entire assessment could not be reopened was not finally affirmed.

Final Conclusion: The revision was allowed, the Tribunal's order was set aside, and the matter was sent back for fresh decision in accordance with the stated legal position.

Ratio Decidendi: Proceedings under section 21 reopen the assessment for reassessment, and the assessing authority must determine the reassessment in accordance with that statutory jurisdiction.

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