SAUMITRA DAYAL SINGH,J. - (1.) Heard Sri R.R. Agrawal, learned Senior Counsel assisted by Sri Anish Agrawal and Sri Suyash Agrawal, learned counsel for the petitioner and Sri C.B. Tripathi, learned standing counsel appearing for the State.
(2.) Petitioner is a company incorporated under the Companies Act , 1956. It has filed the present petition to challenge the reassessment proceeding initiated against it under Section 29 of the U.P. VAT Act, 2007 (hereinafter referred to as the Act) for the Assessment Year 2008-09 (U.P.). These proceedings have been initiated vide reassessment notice dated 2.3.2017 issued by the Deputy Commissioner, Commercial Tax, Sector-III Allahabad, upon prior permission obtained by that authority under the proviso to Section 29 (7) of the Act, from the Additional Commissioner, Grade-I, Commercial Tax, Allahabad Zone, Allahabad.
(3.) On 20.12.2007, the petitioner claims to have purchased from Kanpur Development Authority a free hold plot of land to construct residential flats under a housing scheme by the name Kanha Shyam Residency, Kanpur. In April, 2008 the petitioner started raising construction of boundary wall on the said plot of land. It is then disclosed that the map for such construction was sanctioned by the Kanpur Development Authority on 16.7.2008. Thereafter, it started raising further constructions on the aforesaid plot that the petitioner describes as Block-A, Towers 1 and 2. However, according to the petitioner, initially, that is during the Assessment Year 2008-09, it met the expenditure of these constructions from its own resources for which purpose it is also disclosed to have obtained a term loan of Rs. 25,00,00,000/- from the State Bank of India, on 17.8.2010 in the shape of cash credit facility.;