Reassessment based on untested third-party information fails when original records and cross-examination are denied.

In reassessment under Section 21 of the U.P. Trade Tax Act, the revenue must prove the genuineness and authenticity of information used against the dealer, particularly where the dealer denies any connection with it. If the assessing authority relies on material obtained from another source, fair procedure requires production of the original record and an opportunity to confront that material and cross-examine the concerned witness when requested. As the Mandi Samiti record was neither summoned nor tested through cross-examination, the assessment rested only on untested information and the turnover estimate based on that material could not be sustained.

---

---

Issues: Whether, in proceedings under Section 21 of the U.P. Trade Tax Act, the assessment based on information obtained from the Mandi Samiti could be sustained without production of the original record and without giving the dealer an opportunity to confront the material and cross-examine the concerned witness.

Analysis: In reassessment proceedings under Section 21 of the U.P. Trade Tax Act, the burden lies on the revenue to establish its case. Where the assessing authority relies on information or documents supplied by another source, it must prove the genuineness and authenticity of that material, especially when the dealer specifically denies any connection with it. If the dealer seeks summoning of the original record and cross-examination of the person from whom the information emanates, fair procedure requires confrontation of the primary material and an opportunity of cross-examination. In the present matter, the original Mandi Samiti record was neither summoned nor confronted, and the requested opportunity of cross-examination was not provided. The assessment was therefore based only on untested information.

Conclusion: The assessment could not be sustained, as the revenue failed to prove the authenticity of the information relied upon and the turnover estimate based on that material was unjustified.

---