Reasonable time for surtax assessment upheld where no express limitation governed completion of the original assessment.

The Surtax Act contained no express time-limit for completing the original assessment, so the reopening limit in section 8(b) could not be imported to invalidate the assessment. Section 153 of the Income-tax Act, 1961 was also not made applicable through section 18 of the Surtax Act. In the absence of a prescribed period, the assessment had to be completed within a reasonable time in the statutory context. Because surtax assessment depended on the completed income-tax assessment and was made within less than two years thereafter, it was held to be within a reasonable time and not barred by limitation.

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Issues: Whether the surtax assessment for the assessment year 1965-66, completed more than four years after the end of the assessment year, was invalid in law for want of limitation.

Analysis: The Surtax Act did not prescribe any express time-limit for completion of assessment. The limitation for reopening under section 8(b) could not be treated as a limitation for completing the original assessment, and section 153 of the Income-tax Act, 1961 was not made applicable by section 18 of the Surtax Act. The Court distinguished the authorities relied on by the assessee and held that, where no specific period is prescribed, the assessment must at least be completed within a reasonable time. Since surtax assessment depends on computation of total income under the Income-tax Act and could only follow completion of the income-tax assessment, the assessment made within less than two years after the income-tax assessment was not unreasonable.

Conclusion: The surtax assessment was not barred by limitation and was valid in law, in favour of the Revenue.

Ratio Decidendi: Where the governing statute prescribes no time-limit for completing an assessment, a limitation for reopening cannot be imported to control completion of the original assessment, and the assessment will be valid if made within a reasonable time in the statutory context.

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