Limitation for reassessment notice upheld where unamended statute governed and notice fell within the five-year period.

Reassessment under section 19(1) of the Madhya Pradesh General Sales Tax Act, 1958 was held to be within limitation because the unamended provision allowed initiation within five calendar years from the expiry of the relevant year. For section 2(u), "year" meant the financial year ending on 31 March unless the dealer had opted for a different accounting year, and no such option was shown. On that basis, the relevant year ended on 31 March 1960 and the limitation period expired on 31 March 1965; the notice issued on 15 February 1965 was therefore valid. The later amended limitation provision did not apply, as the case was governed by the original statutory scheme.

---

---

Issues: Whether the notice initiating reassessment under section 19(1) of the Madhya Pradesh General Sales Tax Act, 1958 was within limitation, and whether the amended limitation provision applied to the case.

Analysis: Under the unamended section 19(1), reassessment could be initiated within five calendar years from the expiry of the relevant year. The expression "year" in section 2(u) meant the financial year ending on 31 March unless the dealer had exercised an option for a different accounting year. No material showed that any such option had been exercised. The relevant year therefore ended on 31 March 1960, and the five-year period expired on 31 March 1965. The reassessment notice issued on 15 February 1965 was therefore within time. The later amendments were not applied because the case was governed by the original statutory scheme.

Conclusion: The reassessment proceedings were not barred by limitation, and the notice was validly issued within time in favour of the assessee.

---