Estate duty limitation turns on issuance of notice, not service, so timely initiation under section 59 was upheld.

For limitation under the Estate Duty Act, proceedings for levy of estate duty under section 59 commence on issuance of the notice, not on its service. Section 73A(a) bars first assessment proceedings only if commenced after five years from the date of death, and the Court construed that bar strictly but found no requirement that service must also occur within that period. A notice issued within five years was sufficient to validly start proceedings, so non-service did not defeat initiation for limitation purposes. The referred question was answered in favour of the Department.

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Issues: Whether proceedings for levy of estate duty under section 59 of the Estate Duty Act, 1953 commence on issuance of notice or only on service of notice, for the purpose of limitation under section 73A(a) of that Act.

Analysis: Section 73A(a) bars commencement of first assessment proceedings after five years from the date of death, and section 59 empowers the Controller to require the accountable person to submit an account subject to that limitation. The Court held that the relevant act for commencement is the issuance of notice, not its service. The notice issued under section 59 within five years was sufficient to start proceedings, and non-service did not render the initiation ineffective for limitation purposes. The limitation provision was construed strictly, but its plain language did not require service within five years.

Conclusion: Proceedings under section 59 were not barred by limitation under section 73A(a); the answer to the referred question was in favour of the Department.

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