Fresh assessment after appellate setting aside of original assessment was held permissible despite limitation objections.

Fresh assessment after an appellate authority sets aside the original assessment is not barred by limitation where the statute permits reassessment in pursuance of an order of a court or authority. The phrase "in pursuance of" is construed broadly to mean "by reason of" that order, so an express remand or specific direction is not required if the assessment proceedings remain to be completed under the statutory scheme. The period during which proceedings were stayed must also be excluded in computing limitation. On that construction, the sales tax authority remained competent to make the fresh assessment.

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Issues: Whether fresh assessment orders could validly be made after the appellate authority set aside the original assessments, or whether such action was barred by limitation under section 42 of the Gujarat Sales Tax Act, 1969.

Analysis: Section 42(1)(a) ordinarily bars an order of assessment after the prescribed period, but the third proviso permits fresh assessment within three years where such assessment is required in pursuance of an order under the Act or of any court or authority. The phrase "in pursuance of" was construed broadly, as meaning "by reason of", so that a fresh assessment becomes permissible when the earlier assessment is annulled in appeal and the assessment proceedings are left incomplete. The absence of an express remand or specific direction for fresh assessment does not prevent the statutory power from being exercised, because the obligation to complete assessment follows from the scheme of the Act. The stay period also had to be excluded in computing limitation.

Conclusion: Fresh assessment was not barred by limitation and the Sales Tax Officer was competent to proceed.

Ratio Decidendi: Where an assessment order is set aside in appeal and the statute provides for fresh assessment in pursuance of an order of a court or authority, the expression "in pursuance of" includes action taken by reason of that order, even without an express remand or direction.

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