Limitation for reassessment under trade tax law depends on timely notice, not just the initial assessment period.

Section 21(2) of the U.P. Trade Tax Act, 1948 fixes the outer period for assessment or reassessment, but it operates subject to section 21 as a whole. Where notice under section 21(1) is served within that prescribed period, section 21(3) permits completion of the assessment or reassessment within six months after expiry of that period. On that construction, an order passed after the initial period is not time-barred if the notice was timely served. The limitation objection was rejected, the Tribunal's contrary view was held erroneous, and the matter was required to be decided on merits.

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Issues: Whether the reassessment order was barred by limitation under section 21 of the U.P. Trade Tax Act, 1948, and whether the Tribunal ignored the effect of sub-section (3) when the notice had been served within the prescribed period.

Analysis: Section 21(2) prescribes the outer period for making an assessment or reassessment, but it expressly operates subject to the other provisions of the section. Section 21(3) provides that where notice under section 21(1) is served within the period specified in sub-section (2), the assessment or reassessment may be completed within six months after the expiry of that period. As the notice had been served within time, the later assessment order could not be treated as time-barred merely because it was passed after the initial period referred to in sub-section (2).

Conclusion: The limitation objection was rejected, the Tribunal's view on bar of time was held erroneous, and the matter had to be decided on merits.

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