Prospective operation of estate duty reassessment power barred reopening of final assessments made before commencement.

Section 59 of the Estate Duty Act, 1953, was held to create a substantive new power to call for a fresh account and reassess escaped property de novo, unlike section 62 which only allowed limited rectification and additional duty in specified cases. As a result, the provision was construed as prospective only, since no express language or necessary implication showed an intention to make it retrospective. Reopening assessments that had already become final before 1 July 1960 was therefore bad in law.

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Issues: Whether section 59 of the Estate Duty Act, 1953, is retrospective in operation and, if not, whether a reopening of assessments completed before the provision came into force was bad in law.

Analysis: The earlier provision under section 62 of the Estate Duty Act only permitted rectification and determination of additional duty in limited situations, whereas section 59 conferred a new and wider power to require a fresh account and to assess or reassess escaped property de novo. The change was held to be substantive and not a mere continuation or variation of the earlier remedy. Applying the settled rule that a statute is not to be construed retrospectively unless such intention is expressed clearly or arises by necessary implication, the provision was found to be prospective only. No express language or necessary intendment justified reopening assessments that had already become final before 1 July 1960.

Conclusion: Section 59 of the Estate Duty Act, 1953, is not retrospective in operation, and reopening of assessments completed before its commencement was bad in law.

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