Limitation on reassessment under sales tax law barred late proceedings where no fresh assessment order existed.

The Bihar Sales Tax Act limitation under the proviso to section 13(6) barred reassessment proceedings initiated more than four years after the expiry of the relevant assessment period. The court held that the review power under section 24(5) and rule 39 of the Bihar Sales Tax Rules did not create an independent reassessment mechanism outside section 13(6). Because the proceeding for the 1955-56 assessment year was started on 18 October 1960, and no appellate, revisional, review, or reference order directed a fresh assessment, the reassessment was time-barred and the reference was answered in favour of the assessee.

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Issues: Whether the reassessment proceeding initiated on 18 October 1960 for the assessment year 1955-56 was barred by limitation under the proviso to section 13(6) of the Bihar Sales Tax Act, 1947.

Analysis: The limitation in section 13(6) applies to proceedings for assessment initiated beyond four years from the expiry of the relevant period, and also where fresh assessment follows appeal, revision, review, or reference. The review power under section 24(5) and rule 39 of the Bihar Sales Tax Rules, 1949, did not create an independent reassessment regime outside section 13(6). Since the proceeding was initiated more than four years after the end of 1955-56 and no appellate order directing fresh assessment existed, the proceeding fell within the statutory bar.

Conclusion: The reassessment proceeding was barred by limitation and the answer to the reference was in favour of the assessee.

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