TaxTMI 
TaxTMI 
2021 (11) TMI 435
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....01-02 arising out of assessment proceedings initiated under section 21 of the U.P. Trade Tax Act, 1948, in which following questions of law have been framed. i) Whether on the facts and in the circumstances of the case the Commercial Tax Tribunal as well as the authorities below were justified in imposing tax on Bitumen amounting to Rs. 40000/- on a turnover of Rs. 2 lakh under section 21 when no authorisation was sought by the assessing authority and given by the Additional Commissioner, Allahabad Zone, Allahabad for initiation of proceeding as per provision to section 21(2) of the U.P. Trade Tax Act 1948 to tax Bitumen. ii) Whether on the facts and in the circumstances of the case Tribunal was legally justified in uphold....
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....Allahabad Zone, Allahabad by order dated 15.11.2006 granted permission to reopen the complete assessment. After permission, the assessing authority issued notice dated 5.7.2007. Thereafter the assessing authority by its order dated 1.9.2007 has passed the reassessment order imposing tax of Rs. 65951/- on Gitti as well as Rs. 40,000/- on the supply of coal tar. The revisionist contested the matter upto the Tribunal unsuccessfully, hence the present revision. Learned counsel for the revisionist submitted that at the time of passing the original assessment order a detailed scrutiny of books of accounts as well as material on record was made, hence the benefit of tax paid purchase of Gitti of Rs. 511260/- was allowed. By way of reassessment ....
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.... was granted by the Additional Commissioner, Allahabad Zone, Allahabad by order dated 15.11.2006. The reassessment order dated 1.9.2006 reveals that two dealers from which tax paid purchases has been shown by the revisionist are namely; M/s Singh Stone Mill, Kabrai, Mahoba and M/s Mahashakti Stone Mill, Kabrai, Mahoba. There is no information whatsoever contrary to the material on record. So far as M/s Singh Stone Mill for disbelieving the purchases made by the dealer is concerned, the only information has been received that the selling dealer has neither produced bill book nor has given the details of sale list. On the said facts only the benefit of tax paid sale has been disbelieved. Record further reveals that the cash memo, which has be....
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....he Hon'ble Supreme Court while dealing with the meaning of expression 'reason to believe' in Section 26 of the Indian Penal Code held that the reason to believe is not the same as suspicion and a person must have reason to belief if the circumstances are such that a reasonable man would by probable reasoning, conclude or infer regarding the nature of the thing concerned. In Income Tax Officer vs. Lakhmani Mewal Das (1976) 103 I.T.R. 437: 1976 U.P.T.C. 809 (SC), the Hon'ble Supreme Court held that the reasons for the formation of the belief contemplated by Section 147 (a) of the Income Tax Act, 1961 for the reopening of an assessment mush have a rational connection or relevant bearing on the formation of the belief. Rational ....
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....ntention of the learned Standing Counsel that action could be initiated under Section 21 merely if the Assessing Officer though that the turnover had escaped assessment is not tenable and is against the patent provision of law which has used the word 'reason to believe' only to protect the tax payer from arbitrary and illegal action of the Assessing Officer. This view is also not supported by the various rulings cited by Sri R.D.Gupta in support of his contention that any reason is good enough for initiating action under section 21. He placed reliance on Kalpana Kala Kendra vs. Sales Tax Officer 1989 U.P.T.C. 597 ( Paragraph 19) in which this Court concluded we are fully satisfied that there is material before the respondent- Assess....