Extension of assessment time must be granted before limitation expires; a later extension cannot validate a time-barred assessment.

A statutory extension of time for completing an assessment must be exercised before the prescribed limitation period expires; once the period lapses, the power to complete the assessment is extinguished and cannot be revived by a later extension. Because the request for further time under the Odisha Value Added Tax Act was made after the six-month period had already ended, the assessment orders were without jurisdiction and could not be sustained. The writ petitions succeeded and the impugned assessments were set aside in favour of the assessee.

---

---

Issues: Whether the assessment under section 42 of the Odisha Value Added Tax Act, 2004 was invalid because the request and grant of further time to complete the assessment were made after expiry of the six-month period.

Analysis: The audit visit report had been received and notice under section 42(1) had been issued, so the assessment had to be completed within six months under section 42(6). The proviso permitting further time is conditional on exercise of that power within the subsisting period of limitation. The Court applied the principle that once the prescribed period expires, the right to complete the assessment stands extinguished and the limitation cannot be enlarged afterwards. Since the request for extension was made after the six-month period had already expired, the subsequent extension could not validate the assessment.

Conclusion: The assessment orders were without jurisdiction and were liable to be set aside in favour of the assessee.

Final Conclusion: The writ petitions succeeded, and the impugned assessment orders could not be sustained because the extension of time was sought and granted after the statutory period had already lapsed.

Ratio Decidendi: A statutory power to extend the period for completion of assessment must be exercised before expiry of the prescribed limitation period; once that period expires, the assessment becomes time-barred and cannot be revived by a later extension.

---