Statutory Deeming Principle removes a previously applicable limitation, allowing notice powers to remain enforceable despite the prior time bar.

The Amending Act's deeming provision removed the five year limitation for discovering escaped profits and, treated as always existing, eliminated the time bar to issuing assessment notices. Applying the statutory deeming principle, the court construed the broad language of the notice power as enabling issuance to a person believed to have been engaged in the relevant business for the chargeable period, and rejected a belated contention that only the limitation provision authorized notice. Outcome: the notice was not time barred and the Revenue's assessment power under the notice provision stands.

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Issues: (i) Whether the assessment to excess profits tax for the chargeable accounting period 1st April, 1941 to 31st March, 1942, commenced by a notice under section 13 of the Excess Profits Tax Act issued on 8th March, 1950, was barred by time.

Analysis: The court examined section 13 of the Excess Profits Tax Act, 1940 (power to issue notices requiring returns) and section 15 as it stood before amendment (five-year limitation for discovering escaped profits). It considered the effect of section 16 of the Excess Profits Tax (Amendment) Act, 1947, which omitted the words "within five years of the end of the chargeable accounting period in question" from section 15 and declared that omission to be deemed always to have existed, together with section 1(2) of the Amending Act deeming the Act to have come into force on 31st March, 1947. Applying the statutory-deeming principle, the court treated the five-year limitation as never having existed for purposes of section 15, and construed the wide language of section 13 as empowering the Excess Profits Tax Officer to issue a notice to a person believed to have been engaged in the relevant business in respect of the specified chargeable accounting period. The court also declined to entertain a new contention that only section 15 (and not section 13) could be the source of authority for the notice, noting the question was not raised before the Tribunal and finding no merit in that contention on construction of the statutory language.

Conclusion: The notice issued on 8th March, 1950 under section 13 was not barred by limitation; the plea of limitation is unavailable in view of the Amending Act and section 13 authorises the notice. The question is answered in the negative (i.e., assessment was not time-barred) in favour of the Revenue.

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