Limitation for remand reassessment barred further tax proceedings after expiry of the statutory period.

Reassessment ordered after remand had to be completed within the limitation period under section 21(4) of the U.P. Sales Tax Act, namely within one year from receipt of the remand order or by 31 December 1982, whichever was later. Because the remand order was served on 28 January 1982, the reassessment could validly be made only up to 28 January 1983. No reassessment order was passed within that period, and no effective stay operated until 5 May 1985. The reassessment proceedings were therefore time-barred, and prohibition against further assessment proceedings was issued.

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Issues: Whether the reassessment proceedings were barred by limitation under section 21(4) of the U.P. Sales Tax Act, 1948.

Analysis: The order of assessment had been set aside and the matter remanded for reassessment. Under section 21(4), the reassessment had to be made within one year from receipt of the remand order, or by 31 December 1982, whichever was later. On the facts found, the remand order was served on 28 January 1982, so the reassessment could have been made only up to 28 January 1983. No valid reassessment order was passed within that period, and no stay order had been operating till 5 May 1985.

Conclusion: The reassessment proceedings were time-barred and could not continue.

Final Conclusion: The writ petition succeeded and prohibition was issued against further assessment proceedings.

Ratio Decidendi: Where a reassessment is directed after remand, it must be completed within the statutory limitation period prescribed for remand reassessments, failing which the proceedings become barred.

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