Limitation for agricultural income-tax assessments turns on timely despatch of the order, not later service.

Section 35(2) of the Agricultural Income-tax Act was construed to mean that an assessment order must be despatched so that it goes beyond the assessing authority's control within five years from the end of the year in which the agricultural income was first assessable. Actual service may occur later, but despatch after expiry of the limitation period does not satisfy the statutory time limit. On that construction, the assessments for the assessment years 1979-80 and 1980-81, having been despatched after the five-year period, were time-barred.

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Issues: Whether the assessments for the assessment years 1979-80 and 1980-81 were completed within the period prescribed under section 35(2) of the Agricultural Income-tax Act.

Analysis: Section 35(2) bars an assessment order after the expiry of five years from the end of the year in which the agricultural income was first assessable. The operative completion of the assessment requires that the order be issued so as to go beyond the control of the assessing authority within the prescribed period. Actual service of the order may occur later, but the order must be despatched within time to satisfy the statutory limit. Since the assessment orders for both years were despatched after expiry of the five-year period, they were not made within the prescribed time.

Conclusion: The assessments for both years were time-barred and the question was answered in the negative in favour of the assessee.

Ratio Decidendi: For the purpose of a statutory time limit on assessment, the assessment order is made only when it is put beyond the control of the assessing authority, and despatch after expiry of the limitation period renders the assessment barred by time.

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