Reassessment without material of escaped turnover cannot stand when declarations and accounts support the assessee.

Reassessment under Section 21 of the U.P. Trade Tax Act was found unjustified where the Tribunal, on two remands and on the record, recorded factual findings that the Form-C declarations had been issued by the Rajasthan Tax Department, the purchasing dealer had already been assessed in Rajasthan, the assessee's books of account were accepted, and there was no material showing escaped turnover. On that basis, reassessment proceedings were held unwarranted and the revisional challenge failed, leaving the Tribunal's order in favour of the assessee intact.

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Issues: Whether reassessment under Section 21 of the U.P. Trade Tax Act was justified on the ground that the Form-C declarations were unverified and the turnover had escaped assessment.

Analysis: The Tribunal, after two rounds of remand and on consideration of the records, found that the Form-C declarations had been issued by the Rajasthan Tax Department, that the purchasing dealer had already been assessed in Rajasthan, that the assessee's books of account had been accepted, and that no material existed to show any escaped turnover. These were findings of fact based on the material on record.

Conclusion: Reassessment proceedings were not warranted and the revisional challenge to the Tribunal's order failed.

Final Conclusion: The revisions were rejected, and the Tribunal's order allowing the assessee's second appeals was upheld.

Ratio Decidendi: Reassessment cannot be sustained in the absence of material showing escaped turnover, particularly where the relevant declarations and accounting records support the assessee's case and the dispute is resolved on factual findings.

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