Reassessment limitation turns on timely notice, not final order, under Tamil Nadu entertainment tax proceedings.

In reassessment under Section 7-B of the Tamil Nadu Entertainment Tax Act read with Rule 43-E(1), the Madras HC construed limitation by reference to initiation of proceedings rather than the date of the final order, unless the statute clearly requires otherwise. The Court held that assessment is a comprehensive process and that issuance of reassessment notices within five years from the end of the relevant assessment years was sufficient to keep the proceedings in time. As the notices only sought objections to the proposed levy and did not finally determine reassessment, the challenge to the notices failed.

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Issues: Whether reassessment under Section 7-B of the Tamil Nadu Entertainment Tax Act, 1939 read with Rule 43-E(1) of the Tamil Nadu Entertainment Tax Rules, 1939 is barred unless the final reassessment order is passed within five years from the end of the assessment year, or whether issuance of the reassessment notice within that period is sufficient.

Analysis: The limitation provision was construed in the context of the scheme of reassessment. The Court accepted the principle that assessment is a comprehensive process and does not necessarily mean only the final order, unless the statutory language compels such a narrow meaning. On that construction, the relevant question was whether the proceedings were initiated within the prescribed period. Since the impugned notices were issued within five years from the end of the respective assessment years, the initiation of reassessment was held to be within time. The Court also noted that the notices only called for objections to the proposed levy and did not themselves conclude the reassessment.

Conclusion: The reassessment notices were validly issued within limitation, and the challenge to the notices failed.

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