Reassessment not barred by change of opinion where original assessment lacked a real decision on stock transfer claims.

Reassessment under section 21 of the U.P. Trade Tax Act was not barred by change of opinion where the original assessment had not contained a real adjudication on the nature of the transactions. The court noted that the assessing authority had not meaningfully examined the assessee's stock transfer claim under section 6A of the Central Sales Tax Act, and the reassessment proposal was based on the view that SIM cards and smart cards had been transferred to different companies and turnover had escaped assessment. On that basis, the approval for reassessment and the consequential notice were upheld.

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Issues: Whether the approval for reassessment under section 21 of the U.P. Trade Tax Act, 1948 and the consequential notice were liable to be quashed on the ground of change of opinion, particularly in the context of the assessee's claim of stock transfer under section 6A of the Central Sales Tax Act, 1956.

Analysis: The assessment order had not discussed the claim in any meaningful manner and had proceeded as though the transactions were stock transfers. The subsequent reassessment proposal was founded on the view that the SIM cards and smart cards had been transferred to different companies and that the turnover had escaped assessment. Under section 6A of the Central Sales Tax Act, 1956, the assessing authority is required to examine the evidence and satisfy itself whether the movement of goods was otherwise than by way of sale. On the materials placed, the earlier order could not be treated as a conscious adjudication on the true nature of the transactions, and the reassessment proceedings were not vitiated by mere change of opinion.

Conclusion: The approval for reassessment and the notice issued under section 21 were valid and were not liable to be set aside.

Final Conclusion: The writ petition failed, and the reassessment proceedings were permitted to continue in accordance with law.

Ratio Decidendi: Where the original assessment does not contain a real decision on the character of the transaction, reassessment is not barred as a mere change of opinion if the authority is called upon to examine whether the turnover escaped assessment.

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