Limitation runs from the date proceedings begin, so an amended period can govern an assessment already within time.

An amended limitation provision applies to assessment proceedings instituted after the amendment comes into force, even if the underlying tax liability arose earlier. The governing principle is that limitation is ordinarily tested by the law in force on the date proceedings are initiated, not by the law in force when the liability accrued. Because the right to commence proceedings had not already become barred under the unamended law before the amendment took effect, the extended limitation period in section 13(6) governed the assessment initiated on 29 June 1950. The proceeding was therefore valid and not time-barred.

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Issues: Whether the amended limitation period under section 13(6) of the Bihar Sales Tax Act, 1947, as substituted by section 7 of the Bihar Sales Tax (Amendment) Act, 1948, applied to assessment proceedings initiated on 29 June 1950 in respect of an earlier tax period.

Analysis: The governing principle applied was that a limitation provision is ordinarily tested by the law in force when proceedings are instituted, not by the law in force when the liability arose. On the date the assessment proceedings were initiated, the amendment extending the period of limitation had already come into force. The authorities' right to commence proceedings under the unamended law had not become barred before the amendment took effect, and the amended provision therefore governed the initiation of the proceeding.

Conclusion: The amended section 13(6) applied, and the assessment proceeding commenced on 29 June 1950 was valid and not barred by limitation, in favour of the Revenue.

Ratio Decidendi: A limitation amendment applies to proceedings instituted after its commencement where the right to initiate proceedings had not already been extinguished under the prior law, because limitation is determined by the law in force on the date of institution of proceedings.

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