Limitation on reassessment proceedings cannot be extended by an appellate finding for a different assessment year

Proceedings initiated under section 34(1)(b) for assessment year 1951-52 were held barred by limitation because the notice was issued beyond the normal time-limit. Reliance on section 34(3) failed, as the proviso could not extend limitation for an assessment year not covered by the appellate proceedings. A finding in the appellate order for one year did not authorise reopening of a different year after the limitation period had expired, so the initiation of reassessment was not in accordance with law.

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Issues: Whether the initiation of proceedings under section 34(1)(b) for the assessment year 1951-52 was in accordance with law.

Analysis: The notice for the assessment year 1951-52 was issued beyond the normal time-limit under section 34(1)(b). The attempt to justify it by relying on section 34(3) failed because the proviso could not be used to save limitation for an assessment year other than the year that was the subject of the appellate proceedings. A finding in the appellate order for one year could not authorise reopening of assessment for another year after the expiry of limitation.

Conclusion: The initiation of proceedings under section 34(1)(b) for the assessment year 1951-52 was not in accordance with law and was barred by limitation.

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