Remand assessment remains a continuation of original proceedings, so escaped-income limitation does not apply.

An assessment made after a remand order setting aside the original assessment is treated as a continuation of the original proceedings, not as a fresh proceeding for escaped income. The assessing authority, on remand, may redo the assessment within the scope of the remand, and the limitation applicable to reassessment or escaped-income proceedings does not govern that exercise. The principle rests on the remand wiping the slate clean while preserving the continuity of the original assessment process. The question was answered in favour of the revenue and against the assessee.

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Issues: Whether an assessment made pursuant to a remand order, after the original assessment was set aside, could be treated as a fresh assessment attracting the limitation applicable to escaped income.

Analysis: The original assessment had been set aside in revision and the matter remanded for fresh disposal after inspection of the holdings. On that footing, the remand was treated as wiping the slate clean and conferring a free hand on the assessing authority to redo the assessment. An assessment made in pursuance of such remand is only a continuation of the original proceedings, and the limitation applicable to proceedings for escaped income does not control that exercise. The principle was supported by the cited Supreme Court authorities on remand assessments and pending assessment proceedings.

Conclusion: The question was answered in the affirmative, against the assessee and in favour of the revenue.

Ratio Decidendi: An assessment made after a remand order setting aside the original assessment is a continuation of the original proceedings, and not a separate proceeding for escaped income so as to attract the limitation for reopening or assessing escaped income.

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