Reassessment notice upheld where post-assessment survey material showed undisclosed diesel purchases and supplies, not a mere change of opinion.

Reassessment notice under Section 21 of the U.P. Trade Tax Act was upheld where post-assessment survey material and seized books revealed undisclosed purchases of diesel from outside Uttar Pradesh and its supply to transporters against price. The court treated that material as sufficient to form the belief that turnover had escaped assessment, because this aspect had not been examined in the original assessment. The challenge failed as the proceeding was not based on a mere change of opinion, and the approval to initiate reassessment was valid.

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Issues: Whether the notice for reassessment under Section 21 of the U.P. Trade Tax Act could be sustained on the basis of material discovered after the original assessment, and whether the case involved a mere change of opinion.

Analysis: The original assessment did not disclose or examine the purchases of diesel from outside the State of U.P. or its supply to transporters against price. After the assessment, survey material and seized books indicated such purchases and supplies, and the information furnished by the survey officer constituted material for formation of belief that income had escaped assessment. Since this aspect had not been adjudicated earlier, the proceeding was not founded on a mere change of opinion.

Conclusion: The approval to initiate reassessment and the notice under Section 21 were valid, and the challenge to them failed.

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