Estate duty limitation: timely section 55 notice validly commences first assessment proceedings within five years.

For a first assessment under the Estate Duty Act, proceedings are treated as commenced within time if a notice under section 55 is issued and served within five years from the date of death. Section 73A(a) bars levy proceedings only after that period, and the absence of a furnished account does not prevent valid commencement where the statutory notice has already been served. The view that proceedings could begin only on filing of an account or on notice under section 59 was rejected. The assessment was therefore not barred by limitation, and the matter was remitted for decision on merits.

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Issues: Whether proceedings for first assessment of estate duty were barred by limitation under section 73A(a) of the Estate Duty Act, 1953, and whether service of notice under section 55 within five years from the date of death amounted to valid commencement of proceedings.

Analysis: Section 73A(a) bars commencement of proceedings for levy of estate duty after five years from the date of death in a first assessment. The account was not furnished, and the Controller had issued and served a notice under section 55 within the five-year period. Notice under section 55 is an enabling step taken to obtain particulars for assessment, and when such notice is issued within the statutory period, proceedings are treated as having commenced in time. The view that proceedings could begin only on filing of an account or on notice under section 59 was rejected.

Conclusion: The assessment was not barred by limitation, and the Revenue's contention succeeded.

Final Conclusion: The order annulling the assessment was set aside, and the matter was sent back for decision on merits.

Ratio Decidendi: For a first assessment under the Estate Duty Act, proceedings are commenced in time if a notice under section 55 is issued and served within five years from the date of death.

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