Time-barred reassessment under Gift Tax Act invalid where fresh assessment was not completed within the statutory period.

A reassessment under the Gift Tax Act was held time-barred where the earlier assessment had been set aside for fresh assessment, but the competent authority failed to complete the new assessment within the period prescribed under section 16A(3). The Tribunal noted that the statutory limit expired on 31-03-2004, while the reassessment order was passed on 31-03-2006, and that the authority had not proceeded de novo as directed. On those facts, the reassessment was invalid and void, and the assessee succeeded.

---

---

Issues: Whether the reassessment order was barred by limitation under section 16A(3) of the Gift Tax Act, 1958, and consequently liable to be treated as void.

Analysis: The Tribunal noted that the earlier order had set aside the assessment to be redone by way of a fresh assessment. It held that, on the facts, the competent authority was required to pass the fresh assessment within the period prescribed under section 16A(3). The order passed on 31-03-2006 was beyond the statutory period, which expired on 31-03-2004, and the authority had not proceeded de novo in the manner directed earlier.

Conclusion: The reassessment was time-barred and invalid, and the assessee succeeded.

---