Retrospective validation of assessment proceedings defeated the limitation plea where the Additional Collector was deemed competent from inception.

The U.P. Agricultural Income-tax (Amendment) Act, 1956 retrospectively validated assessments made by an Additional Collector by deeming him to fall within the definition of "Collector" from the inception of the principal Act. It also authorised review of earlier orders where assessments had been set aside only for want of jurisdiction. Because the proceedings had been initiated within time and were later revived by review, they were treated as continuously pending rather than as a fresh time-barred claim. The limitation objection therefore failed and the assessment was upheld in favour of the Revenue.

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Issues: Whether the U.P. Agricultural Income-tax (Amendment) Act, 1956 retrospectively validated the assessment made by the Additional Collector and removed any bar of limitation.

Analysis: The amendment substituted the definition of "Collector" so as to include an Additional Collector and also provided for review of earlier orders where assessments had been set aside only for want of jurisdiction. The proceedings had been initiated within time, were later revived by review, and by virtue of the deeming provision the Additional Collector was treated as having had authority from the inception of the principal Act. On that basis, the assessment proceedings were regarded as continuously pending and not as a fresh barred claim. The challenge that the right to assess had become time-barred therefore failed.

Conclusion: The retrospective amendment validly restored the assessment proceedings and the plea of limitation was rejected in favour of the Revenue.

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