Limitation for escaped agricultural income assessments under the old Act was not extended by the new Act's saving clause.

Repeal and saving provisions under the new Agricultural Income-tax Act preserved rights, liabilities and pending proceedings under the repealed Act, but did not extend the time to reopen or complete escaped assessments for pre-commencement years. For assessment year 1986-87, the escaped agricultural income assessment remained governed by the five-year limitation in section 35 of the old Act, and section 41(1) of the new Act could not enlarge that period. The assessment was therefore time-barred and unenforceable, with the assessee succeeding on the limitation issue.

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Issues: Whether the escaped agricultural income assessment for assessment year 1986-87, initiated after the repeal of the Agricultural Income-tax Act, 1950, was governed by the limitation under the old Act or by section 41(1) of the new Act.

Analysis: The repeal and saving provisions in section 99 of the new Act preserved rights, liabilities, and pending proceedings under the repealed Act, but did not extend the period of limitation for reopening or completing escaped assessments for periods prior to commencement of the new Act. The assessment in question related to a period governed by the old Act, and the power to complete such escaped assessment had to be exercised within the five-year period prescribed by section 35 of the old Act. Section 41(1) of the new Act did not enlarge the limitation for pre-commencement assessment years.

Conclusion: The escaped assessment for assessment year 1986-87 was time-barred and unenforceable, and the assessee succeeded on the limitation issue.

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