Limitation for reassessment after remand runs from receipt of the remand order; delayed proceedings were time-barred.

Reassessment pursuant to a remand must be completed within the statutory limitation period counted from receipt of the remand order in the assessing office. On the admitted dates, the remand order was received on 27 May 1989, so the reassessment ought to have been finished by 8 March 1990, but fresh proceedings were initiated only on 11 February 1994. As the proceedings were commenced beyond the prescribed period under section 21(4) of the U.P. Trade Tax Act, they were time-barred and could not validly continue; the challenge therefore succeeded in favour of the assessee.

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Issues: Whether assessment proceedings initiated after remand were barred by limitation under section 21(4) of the U.P. Trade Tax Act.

Analysis: The record showed that the appellate order remanding the matter was received in the assessing office on 27 May 1989 and, on that basis, the reassessment pursuant to remand ought to have been completed by 8 March 1990. The fresh assessment proceedings, however, were initiated only on 11 February 1994. In view of the admitted dates in the supplementary counter-affidavit, the proceedings were beyond the statutory time limit and could not validly continue.

Conclusion: The assessment proceedings were time-barred and the respondent was not entitled to proceed with the assessment; the challenge succeeded in favour of the assessee.

Ratio Decidendi: Where reassessment is directed after remand, it must be completed within the statutory period counted from receipt of the remand order, failing which the proceedings become time-barred and liable to be quashed.

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