Statutory Time Limits: finalising assessment before objection period expiry voids assessment and requires reconsideration.

Finalising an assessment before expiry of the statutory objection period deprived the assessing authority of jurisdiction to pass a best-judgment assessment under section 18(4); the authority's erroneous view that time expired a day earlier was a patent jurisdictional error and denied the assessee a fair opportunity to have objections considered, therefore the assessment dated 18 February 1989 was held illegal and void and the authority was directed to consider the objections filed and thereafter make fresh assessments in accordance with law.

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Issues: Whether the assessment order passed under section 18(4) of the Kerala Agricultural Income-tax Act (exhibit P-4) dated 18 February 1989 is valid where the assessing authority finalised the assessment on 18 February 1989 despite the assessee having time to file objections inclusive of that date.

Analysis: The pre-assessment notice required objections to be filed within seven days from receipt; the notice was received on 11 February 1989, entitling the assessee to file objections up to and including 18 February 1989. The assessing authority finalised the assessment on 18 February 1989 on the mistaken view that the time expired on 17 February 1989. Finalising the assessment before the expiry of the statutory period deprived the assessing authority of jurisdiction to pass a best judgment assessment under section 18(4). The assessing authority admitted that the assessment was finalised on 18 February 1989 and stated the period expired on 17 February 1989, which is a patent error affecting jurisdiction and resulting in denial of a fair opportunity to have objections considered.

Conclusion: The assessment order dated 18 February 1989 (exhibit P-4) is illegal and void and is quashed. The assessing authority is directed to consider the objections filed by the assessee dated 25 February 1989 and thereafter proceed to make fresh assessments in accordance with law.

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