Estate Duty reassessment time bar under section 73A(b) invalidated the notice and consequential demand

Reassessment under the Estate Duty Act was barred because section 73A(b) did not permit reassessment proceedings to be commenced after three years from the date of assessment to estate duty. The notice for reassessment and the reassessment order were both issued beyond that period, so the proceeding was time-barred. The consequential demand based on the invalid reassessment was therefore quashed.

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Issues: Whether the reassessment initiated and completed under the Estate Duty Act was barred by limitation.

Analysis: The original assessment had been completed on 6 December 1978, and the notice for reassessment was issued on 17 August 1982. Under section 73A(b) of the Estate Duty Act, 1953, reassessment proceedings could not be commenced after three years from the date of assessment to estate duty. Since the reassessment notice and the reassessment order were both issued beyond the permissible period, the proceeding was hit by limitation. The demand raised on the basis of such reassessment was only consequential.

Conclusion: The reassessment was barred by limitation and was liable to be quashed. The consequential demand was also quashed.

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