Court quashes reassessment based on impermissible change of opinion without new material.

The Court quashed the reassessment proceedings initiated by the respondent, finding them to be based on a impermissible change of opinion without new material. The Court emphasized the necessity of a nexus between the change of opinion and new material, citing legal precedent. The reassessment order was deemed to lack a valid basis, being founded on presumption and conjecture. Consequently, the Court allowed the writ petition, resulting in the quashing of the permission to reopen the completed assessment and the consequential reassessment order for the Assessment Year 2009-10 under the U.P. Tax on Entry of Goods into Local Area Act, 2007.

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Issues:
Challenging reassessment proceedings under U.P. Tax on Entry of Goods into Local Area Act, 2007 for Assessment Year 2009-10.

Analysis:
The petitioner, engaged in civil construction work, opted for compounding under U.P. Value Added Tax Act, 2008. The respondent passed a best judgment assessment under Entry Tax Act, enhancing cement purchase by Rs. 15 Lacs and imposing entry tax of Rs. 30,000. The first appellate authority upheld this assessment. No appeal was filed against this decision.

The respondent initiated reassessment proceedings by granting permission to reassess the petitioner in an extended period of limitation. The petitioner objected, arguing no new material justified reopening. The reassessment order was passed ex parte, challenged through an amendment application allowed by the Court.

The Court observed that the reassessment was based on a change of opinion without new material, contrary to legal principles. Citing State of Uttar Pradesh v. Aryaverth Chawal Udyog, the Court emphasized the need for a nexus between the change of opinion and new material. The reassessment lacked a valid basis, being founded on presumption and conjecture.

Consequently, the Court quashed the impugned orders, finding them tantamount to impermissible change of opinion. The writ petition succeeded, leading to the quashing of the permission to reopen the completed assessment and the consequential reassessment order for the Assessment Year 2009-10.

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