Communication of assessment order, not signing, fixes limitation period and can render late assessments time-barred.

Whether an assessment order under the Kerala Agricultural Income-tax Act takes effect on signing or only upon communication is resolved by treating communication as a condition precedent to operative effect; signing alone does not put the taxpayer on notice. The communication (actual or constructive) fixes the date for limitation purposes under the statutory limitation regime for agricultural income, so an assessment signed before expiry but communicated after the limitation period is time barred. The note concludes the assessment and subsequent proceedings are quashed as not effective within the prescribed limitation period.

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Issues: Whether an order of assessment under the Kerala Agricultural Income-tax Act comes into force on the date it is made/signed or only upon communication, and accordingly whether the assessment order dated March 1, 1985 is barred by limitation under Section 35(2).

Analysis: Section 35(2) prescribes a five-year limitation from the end of the year in which the agricultural income was first assessable; the relevant last day was March 31, 1985. Section 30 contemplates communication of demand. Authorities and precedent identify communication (actual or constructive) as the event by which an order becomes final and effective, and treat communication as a condition precedent to the order taking effect. The signing/making of an order is unilateral and does not by itself put the affected party on notice or render the order binding; the order attains operative effect only upon communication, which fixes the date for limitation purposes.

Conclusion: The assessment order dated March 1, 1985 became effective only upon communication by the notice of demand dated June 3, 1985 which was beyond the five-year period under Section 35(2); the assessment is therefore time barred and the order and proceedings pursuant thereto are quashed.

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