Reassessment sanction and application of mind upheld where brief reasons supported belief of escaped turnover

Approval under the proviso to Section 21(2) of the U.P. Trade Tax Act was required to show brief reasons and application of mind, but not a detailed adjudication on the merits. On the material placed, the authority could reasonably believe that turnover had escaped assessment, while factual objections about the survey and the nature of mushroom sales remained open for the reassessment stage before the Assessing Authority. The text also notes that mushroom was treated as outside the category of fresh fruits and green vegetables. The challenge to the sanction order was therefore found to disclose no illegality or absence of application of mind, and the sanction for reassessment was upheld.

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Issues: Whether the sanction granted under Section 21(2) of the U.P. Trade Tax Act for reopening the assessment was illegal or mechanical, and whether the writ petition challenging reassessment sanction was liable to be allowed.

Analysis: The authority granting approval under the proviso to Section 21(2) was required only to record brief reasons showing application of mind and was not obliged to adjudicate the merits in detail. The material before the authority was sufficient to justify a belief that turnover had escaped assessment, and the petitioner could raise factual objections, including the relevance of the survey and the nature of the mushroom sales, before the Assessing Authority in the reassessment proceedings. The order also correctly proceeded on the basis that mushroom was excluded from the category of fresh fruits and green vegetables. The challenge to the sanction order therefore disclosed no illegality or absence of application of mind.

Conclusion: The sanction for reassessment was upheld and the writ petition failed.

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