Reasoned reassessment approval is mandatory where civil consequences follow; mechanical sanction and notice were quashed.

Reassessment approval under Section 21(2) was held unsustainable where the authority granted sanction without considering the dealer's reply and without recording reasons. Applying natural justice, the court stated that an affected assessee must be given an opportunity of hearing and the approving authority must pass a reasoned order before granting reassessment approval, particularly where civil consequences follow. A mechanical sanction was treated as impermissible. The impugned approval and the consequential notice were quashed, and the matter was remitted for fresh consideration after hearing the petitioner and recording reasons.

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Issues: Whether approval granted for reassessment under Section 21(2) without considering the dealer's reply and without recording reasons could be sustained, and whether the consequential notice and reassessment proceedings were liable to be set aside.

Analysis: The petitioner had submitted a detailed reply to the reassessment notice, but the approving authority granted sanction without dealing with the objections or recording reasons. The statutory scheme was read in light of the principles of natural justice, and the Court followed earlier authority holding that, even where the provision does not expressly provide for a hearing, the affected assessee must be given an opportunity of hearing and the authority must record reasons before granting approval for reassessment. A mechanical approval, especially where civil consequences follow, was held to be impermissible.

Conclusion: The approval order could not be sustained. The notice issued in pursuance of that approval was also set aside, and the matter was remitted for a fresh decision after hearing the petitioner and recording reasons.

Final Conclusion: The writ petition was allowed to the extent that the impugned approval and consequential notice were quashed, with a direction for fresh consideration in accordance with law.

Ratio Decidendi: Where reassessment approval under Section 21(2) entails civil consequences, the authority must afford a hearing and pass a reasoned order; a mechanical sanction without considering objections is invalid.

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