2015 (12) TMI 311

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....ari to quash the orders of permission dated 2.2.2010 issued by the respondent no.3 under the proviso to Section 21(2) of the U.P. Trade Tax Act 1948 (hereinafter referred to as the 'Act') for the Assessment Years 2004-05 and 2005-06. The petitioner has also prayed for a writ, order or direction in the nature of mandamus commanding respondent no.4 not to initiate reassessment proceeding. The relief sought with respect to Assessment Year 2006-07 and 2007-08 has not been pressed. 3. Learned counsel for the petitioner submits that the proceedings under Section 21 of the Act has been initiated against the petitioner on the basis of a show cause notice issued by Directorate General of Central Excise Intelligence, New Delhi. 4. He furthe....

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....ty for that purpose and then the Assessing Authority would decide the matter in the light of the material in his possession as well as any fresh material procured as a result of inquiry which may be considered necessary by him. 6. He also relied on Division Bench judgment of this Court dated 8.5.2013, in the case of Writ Tax No.874 of 2010, M/s. Parmarth Stiil and Alloys Pvt. Ltd. Vs. State of U.P. and others. 7. We have, carefully, considered the submissions of learned counsel for the parties and perused the record. 8. We find that searches were conducted on 1.12.2007 and on subsequent dates by the Officers of Directorate General of Central Excise Intelligence at various premises connected with the petitioner and M/s. Seema Enterprises.....

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.... preferred separate appeals before the Additional Commissioner Grade-II (Appeal), 2nd, Commercial Tax, Kanpur challenging the reassessment orders as well as the orders rejecting the applications under Section 30 of the Act. Vide order dated 26.7.2012, the Appellate Authority allowed the appeals arising out of the orders passed under Section 30 of the Act and directed that cases be reopened under Section 30 of the Act and be disposed of in accordance with law. 11. It appears that thereafter the petitioner has filed the present writ petition challenging the authorisation dated 1.2.2010 granted by the respondent no.3 under Section 21(2) of the Act. 12. From the facts as briefly noted above, we find that the Assessing Authority has in its pos....

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....sonable grounds for the assessing authority to believe that the whole or any part of the turnover of a dealer has escaped assessment, it can take action under the section. Reasonable grounds necessarily postulate that they must be germane to the formation of the belief regarding escaped assessment. If the grounds are of an extraneous character, the same would not warrant initiation of proceedings under the above section. If, however, the grounds are relevant and have a nexus with the formation of belief regarding escaped assessment, the assessing authority would be clothed with jurisdiction to take action under the section. Whether the grounds are adequate or not is not a matter which would be gone into by the High Court or this Court, for ....