Reassessment barred during pending assessment where no escaped turnover was shown, and verified F forms ended further enquiry.

Reassessment under section 21 of the U.P. Trade Tax Act could not be initiated while the original assessment remained pending, because no material showed escapement of turnover. On the facts, the notice was issued only for transactions already under verification, so the statutory precondition for reassessment was absent and the proceeding was without jurisdiction. After the F forms covering stock transfers were verified and accepted, no further enquiry or reassessment could survive on the same transactions. The verified declarations satisfied the burden for exemption under the stock transfer provisions, and the assessee remained entitled to that exemption.

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Issues: (i) Whether reassessment proceedings under section 21 of the U.P. Trade Tax Act, 1948 could be initiated during the pendency of the original assessment proceedings when no turnover had escaped assessment; (ii) Whether, after verification and acceptance of the F forms covering the stock transfers, any further reassessment or enquiry could survive against the assessee.

Issue (i): Whether reassessment proceedings under section 21 of the U.P. Trade Tax Act, 1948 could be initiated during the pendency of the original assessment proceedings when no turnover had escaped assessment.

Analysis: The revision involved stock transfers already under scrutiny in the original assessment proceedings. The notice under section 21 was issued while the original assessment was still pending. On the facts found, the same transactions had been remanded only for verification of F forms, and there was no material showing that any part of the turnover had escaped assessment. In such a situation, the precondition for reassessment was absent.

Conclusion: The initiation of proceedings under section 21 was not justified and was without jurisdiction.

Issue (ii): Whether, after verification and acceptance of the F forms covering the stock transfers, any further reassessment or enquiry could survive against the assessee.

Analysis: The F forms relating to the stock transfers were verified and found genuine and correct, and the Department accepted them. The entire turnover in question was thus covered by duly verified forms. In view of the statutory scheme under section 6A of the Central Sales Tax Act, 1956, and the principle that once the prescribed declarations are verified no further enquiry is required on the same transaction, the assessee had discharged the necessary burden for exemption on stock transfers.

Conclusion: No further reassessment or enquiry could continue in respect of the same verified stock transfer transactions, and the assessee was entitled to the exemption.

Final Conclusion: The questions were answered in favour of the assessee, the Tribunal's order was set aside, and the revision succeeded.

Ratio Decidendi: Reassessment cannot be commenced or sustained where the original assessment is still pending and there is no material showing escapement of turnover, and once the prescribed F forms for stock transfers are verified and accepted, further proceedings on the same transactions are unwarranted.

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