Suo motu revision must be exercised within a reasonable time; long-delayed reopening was struck down for two years, upheld for one.

Section 34 of the Kerala Agricultural Income-tax Act, 1950 did not prescribe an express limitation period for suo motu revision, but a revisional power adverse to an assessee had to be exercised within a reasonable time after the assessment attained finality. A delay of about 11 years for one assessment year and about 10 years for another was held inordinate and unjustifiable, so the revisional order could not stand for those years. A reopening after about four years was treated as within a reasonable time, and the revision was sustained for that year. The provision was therefore treated as subject to temporal restraint despite the absence of an express statutory limit.

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Issues: Whether the Deputy Commissioner's exercise of suo motu revisional power under section 34 of the Kerala Agricultural Income-tax Act, 1950 was barred by delay, and whether the revisional order could be sustained for the different assessment years involved.

Analysis: Section 34 did not prescribe an express period of limitation, but the power of revision affecting an assessee adversely had to be exercised within a reasonable time after the assessment had become final. The lapse of about 11 years for one assessment year and about 10 years for another was held to be inordinate and unjustifiable, while the reopening of the later assessment year after about four years was within a reasonable time. The revisional jurisdiction was therefore not treated as free from temporal restraint merely because no express limitation period was written into the provision.

Conclusion: The revisional order was unsustainable for the assessment years 1967-68 and 1968-69, but it was valid for the assessment year 1969-70, resulting in a finding in favour of the assessee on the first two years and in favour of the revenue on the third year.

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