Retrospective reassessment powers must be clear; section 59 could not reopen a completed estate duty assessment.

Section 59 of the Estate Duty Act, 1953 does not operate retrospectively to reopen assessments already completed before its commencement. The provision was treated as materially different from the earlier rectification power under section 62, which was confined to mistakes apparent from the record, valuation errors, and omission of property. Because section 59 contained no express retrospective language and no necessary implication of retrospectivity could be drawn from its scheme, reassessment of a completed assessment could not be sustained. The principle applied was that subsequent legislation should not disturb vested rights without a clear legislative mandate.

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Issues: Whether section 59 of the Estate Duty Act, 1953, was retrospective in operation and could validly be used to reopen an assessment already completed before its commencement.

Analysis: The new provision dealt with property escaping assessment and was materially different from the earlier section 62, which was confined to rectification of mistakes apparent from the record, valuation errors, and omission of property. Although both provisions touched the omission of property, the nature and incidents of the power conferred were not the same. No express words in section 59 gave it retrospective effect, and no necessary implication of retrospectivity could be drawn from its language or scheme. Since the assessment had already been completed before the new provision came into force, reassessment could not be sustained in the absence of a clear legislative mandate, having regard to the principle against interference with vested rights by subsequent legislation.

Conclusion: Section 59 of the Estate Duty Act, 1953, is not retrospective, and the reopening of the completed assessment under that provision is bad in law, in favour of the assessee.

Final Conclusion: The appeals were dismissed with costs, and the reassessment proceedings could not be sustained under section 59.

Ratio Decidendi: A reassessment provision will not apply retrospectively to completed assessments unless retrospectivity is expressly stated or necessarily implied from the statute.

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