Limitation for Estate Duty reassessment turns on actual issue of notice; delayed reopening was invalid.

Reassessment under the Estate Duty Act must commence within the statutory limitation period, and commencement occurs only when the notice is actually issued. Because the second reassessment notice did not leave the office before expiry of the three-year period from the original assessment, the reopening was time-barred and invalid. The repeated audit-based reopening was also unsustainable on the same limitation ground.

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Issues: Whether the second reassessment under the Estate Duty Act was barred by limitation and therefore invalid.

Analysis: The notice for the second reassessment was dated 8-8-1979 but was not issued from the office until 19-9-1979. Under section 73A(b) of the Estate Duty Act, proceedings for reassessment had to be commenced within three years from the date of the original assessment, which expired on 11-8-1979. Since the notice did not leave the office before that date, commencement of reassessment proceedings within time was not possible. The repeated audit-based reopening was also treated as unsustainable on the same basis.

Conclusion: The second reassessment was barred by limitation and rightly annulled, in favour of the assessee.

Ratio Decidendi: For reassessment under the Estate Duty Act, proceedings are commenced only when the notice is actually issued, and if that occurs after the statutory limitation period, the reassessment is invalid.

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