Estate duty proceedings commence with timely section 55 notice, keeping the limitation bar under section 73A out of play.

Proceedings under the Estate Duty Act were treated as commenced when a notice under section 55 was issued and served on the accountable person, because that requisition called for particulars and accounts needed to value the estate and initiate levy. As the notice was served before expiry of five years from the death of the deceased, the limitation bar under section 73A did not apply. The contrary authority cited by the accountable person was distinguished on the basis that it concerned proceedings founded on a voluntary return filed after limitation had expired. The point was decided in favour of the Revenue.

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Issues: Whether proceedings under the Estate Duty Act commenced within the period of limitation when a notice under section 55 was issued and served on the accountable person before expiry of five years from the death of the deceased, so as to save the bar under section 73A.

Analysis: The notice under section 55 is the step by which the Controller calls upon the accountable person to furnish particulars and accounts for valuing the estate and initiating the process of levy. The Court followed the principle that such a requisition starts estate duty proceedings, and therefore if it is issued and served within five years of the death, the limitation bar under section 73A is not attracted. The contrary authority relied upon by the accountable person was distinguished on facts because it dealt with proceedings sought to be founded on a voluntary return filed after expiry of limitation.

Conclusion: The issue was decided against the accountable person and in favour of the Revenue. The proceedings were held to have commenced within limitation because the notice under section 55 had been issued and served in time.

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