Communication of assessment order and limitation scrutiny justified remand for fresh factual and legal consideration

Communication of an assessment order was treated as essential to its effectiveness, so the limitation objection could not be finally resolved without examining whether the order was made and served within the prescribed time. The Commissioner therefore remitted the matter to the assessing authority for fresh consideration of the factual and legal issues, including limitation. In these circumstances, interference with the remand was not warranted, and the limitation plea was left to be decided on merits by the assessing authority.

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Issues: Whether the Commissioner was justified in remitting the matter to the assessing authority without finally deciding the plea that the assessment was barred by limitation.

Analysis: The assessment order was dated within the limitation period, but the assessee's case was that it became operative only on communication. The Commissioner did not finally adjudicate the limitation plea and instead remitted the matter for fresh consideration of the factual and legal issues, including whether the assessment order had been made and served within the time prescribed. The Court held that communication is essential to the effectiveness of an assessment order and that the limitation question required examination of the records by the assessing authority. In these circumstances, interference with the remand order was not warranted.

Conclusion: The remand order was upheld and the limitation issue was left for decision by the assessing authority on merits.

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