Limitation for surtax assessment cannot be implied where the statute prescribes none and escaped-assessment rules do not apply.

The Companies (Profits) Surtax Act, 1964 was held not to bar an assessment for limitation where the statute prescribed no period for completion of assessment or for issuing notice under section 6. Section 8(b), dealing with profits escaping assessment within four years, did not apply because a return had already been filed and the assessment remained pending, so no escapement had occurred. The court also rejected importing a "reasonable time" limitation by implication, since the Act itself contained none. The assessment was therefore within time and the issue was answered in favour of the Revenue.

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Issues: Whether the assessment under the Companies (Profits) Surtax Act, 1964 was barred by limitation.

Analysis: The Act did not prescribe any period of limitation for completion of assessment or for issuance of notice under section 6. Section 8(b), which permits action in cases of profits escaping assessment within four years, was inapplicable because a return had already been filed and the matter was pending for assessment; in such a situation, it could not be said that chargeable profits had escaped assessment. The principle of introducing a limitation period by resort to a "reasonable time" standard was also rejected, since the statute itself contained no such limitation for making the assessment.

Conclusion: The assessment was not barred by limitation, and the question was answered in the affirmative in favour of the Revenue.

Ratio Decidendi: Where the governing fiscal statute prescribes no limitation for making an assessment, and the case does not fall within the specific escaped-assessment provision, no period of limitation can be implied on the ground of reasonableness.

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