Reopening after best judgment assessment requires escaped turnover, not change of opinion, and prior notice before section 21 action

Proceedings under section 21 of the U.P. Trade Tax Act could not be initiated after a best judgment assessment under rule 41(8) merely to revisit the assessing officer's earlier conclusion or enlarge turnover. Reopening was permissible only where an item had actually escaped assessment, and not on a mere change of opinion or to correct an alleged error in the original best judgment assessment. The absence of a prior show-cause notice before invoking section 21 further rendered the initiation unsustainable, so the challenge to the reopening succeeded.

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Issues: Whether proceedings under section 21 of the U.P. Trade Tax Act, 1948 could be initiated after a best judgment assessment under rule 41(8) of the U.P. Trade Tax Rules, 1948 merely on a change of opinion, and without issuing a show-cause notice.

Analysis: A best judgment assessment concluded the original assessment proceedings. Reopening under section 21 was permissible only where it was made clear that some item had escaped assessment. The initiation in the present case was not based on any escaped assessment but on an attempt to enlarge the assessed turnover and correct what the assessing officer later considered to be an error in the original best judgment assessment. The absence of a prior show-cause notice before invoking section 21 further showed that the proceedings were not legally sustainable.

Conclusion: The initiation of proceedings under section 21 was invalid and the challenge failed.

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