Reasoned sanction requirement for reopening assessment: unreasoned approval under trade tax law was quashed and remanded.

A reasoned sanction is required before reopening assessment under the proviso to Section 21(2) of the U.P. Trade Tax Act, 1948, and a sanction order that records no reasons cannot be sustained. The High Court found the impugned sanction devoid of any reasoned basis, so the reassessment notice based on it was quashed. It also protected the matter from being defeated by limitation for fresh consideration and consequential reassessment, and remanded the matter for fresh decision in accordance with law.

---

---

Issues: Whether the sanction granted for reopening the assessment under the proviso to Section 21(2) of the U.P. Trade Tax Act, 1948 was sustainable when the order contained no reasons, and whether the limitation period for passing a fresh sanction order and for reassessment was attracted.

Analysis: The impugned sanction order was examined and found to be devoid of reasons. The governing requirement under the proviso to Section 21(2) is that reasons, though brief, must be recorded before sanctioning reopening of assessment. In the absence of any reasoned basis, the sanction could not be sustained. The Court also protected the matter from being defeated by limitation for the purpose of fresh consideration and consequential reassessment.

Conclusion: The sanction order was set aside, the reassessment notice was also quashed, and the matter was remanded for fresh decision in accordance with law.

---