AI Drafter 
TaxTMI 
TaxTMI 
2008 (8) TMI 822
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....to produce the books of account before the first respondent. The petitioner has submitted exhibit P1 letter seeking details as to why the books of account were being called for. They were informed that the books of account of the deceased father were called for. Exhibit P2 reply was given requesting for more details. Inquiries were made and the petitioner has found that there were assessments made against their late father which were carried in appeal and it resulted in orders of remand being passed for re-doing the assessments. Exhibits P3 and P4 are the appellate orders of the Deputy Commissioner of Appeals. Exhibit P3 dated March 30, 1982 and exhibit P4 dated September 15, 1989 relate to 1974-75 and 1980-81, respectively. The petitioner by exhibit P5 pointed out that the matter is barred by limitation. They were served with exhibits P6 to P8 pre-assessment notices for the years 1974-75 (KGST and CST) and 1980-81, proposing to complete the assessments on best of his judgment. The petitioner thereupon preferred exhibit P9 objection contending that the assessments are time-barred. However, brushing aside the same exhibits P10 to P12 assessment orders were passed. The petitioner cha....
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....eriod fixed. Learned Government Pleader however submitted that the question is covered in favour of the respondents and by virtue of the decision of the Full Bench in Geo Sea Foods' case [2006] 144 STC 553. He further submitted that having regard to the clear terms of section 17A, the contention of the petitioner is without any basis. In order to appreciate the contentions of the parties, to resolve the lis, it is necessary to refer to section 17A of the Act, which was inserted by Act 20 of 2000 with effect from April 1, 1993. Section 17A reads as follows: "17A. Assessment or reassessment of certain cases treated as pending.-Notwithstanding anything contained in section 17 or section 18, or in any judgment, decree or order of any court, Tribunal or other authority any assessment or reassessment for any year shall be deemed to have been pending completion if, in the case of original assessment, return or turnover for the year or any period of the year relating to any period prior to April 1, 1993, has been filed or due to be filed subsequent to the April 1, 1993 and/or a notice in the prescribed form had been served upon the dealer and the assessment in respect o....
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....ent of this court in Geo Seafoods' case [2000] 119 STC 236. In other words, the decision in Geo Seafoods' case [2000] 119 STC 236 having taken the view apparently following the the decision in Iswara Bhat's case [1993] 200 ITR 238 (Ker); [1992] 1 KLT 568 that assessment has to be completed within a reasonable period of time, the effect was that the amendment to section 17 by inserting sub-sections (6) to (9) was robbed of their efficacy by throwing a shadow of doubt over the power of the assessing authority to make orders of assessment in respect of matters, which could be said to be pending otherwise as on April 1, 1993. In Geo Sea Foods case [2006] 144 STC 553 (Ker)[FB], though the issue which was raised in this case did not specifically arise, the court has made observations, which throw considerable light on the issue. It is profitable to refer to paragraph 4, which reads as follows: Section 17 of the Act did not originally stipulate any period within which the assessments should be completed, as already noted above. The only reference to the time for completion of the assessments at that time was the concept of reasonable time as held by this court in Iswara ....
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....ge used in section 17A clearly means that notwithstanding anything contained in section 17 or section 18 or in any judgment, decree or order of any court or Tribunal or other authority, assessments for any period prior to April 1, 1993 shall be deemed to be pending and the same could be completed within the permitted time..." It is crucial to notice the wording of section 17A. Section 17 after the amendment in 1993 and thereafter provides for a time-limit for the completion of assessment in various situations. When the matter reaches the assessing authority, in the form of remand by the appellate authority or revisional authority, the period of limitation appears to be fixed under subsection (8) of section 17. Accepting the argument of the learned Government Pleader that section 17A must be read as meaning that there is no period of limitation in respect of matters covered by section 17A, would in my opinion produce the most unreasonable results apart from a result which is clearly unintended by the phraseology itself. Section 17A has only the effect of deeming that assessments would be pending. It does not provide for a time-limit for completing the assessment. The time-limit f....