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Section 73A of the Estate Duty Act, 1953 - Reassessment-Limitation for commencing proceedings-Original assessment made on 30-11-1970-Reassessment made on 18-02-1972-Another notice under section 59 for reassessment issued on 6-09-1974-Whether impugned notice time-barred having been issued beyond time limit prescribed under section 73A(b)-Held, yes Facts The deceased expired on 12-07-1968. The original estate duty assessment was made on 30-11-1970. A reassessment was also made on 18-02-1972. The Assistant Controller issued on 6-09-1974 another notice under section 59 for reassessment. On writ challenging the notice: Held 1. Section 73A itself prescribes a period beyond which an assessment or reassessment cannot be commenced. Sub-clause (a) refers to first assessment and clause (b) refers to the date of first assessment mentioned in sub-clause (a). This is because the section itself was making provision for a first assessment and for a reassessment. It may be that there can be more than one assessment, but all those reassessments must be commenced within the period of three years from the date of the first assessment. Any contrary view would lead to absurdity. For example, if a reassessment is permitted without regard to the date of first assessment, it would be possible to go on with reassessment proceedings endlessly issuing a notice under section 59 every two years after each reassessment. This could not have been the intention of Legislature at all as an optimum period of five years has been fixed even for first assessment from the date of the death of the person whose estate became liable for estate duty. 2. The term "the date of assessment" in section 73A(b) meant the date of the original assessment under the Estate Daly Act. There was thus no merit in the revenue's contention that the date of assessment could be construed as the date of the last completed reassessment also. Therefore, where an assessment was made on 3-11-1970, no proceedings for reassessment could be commenced on or after 30-11-1973. 3. Hence, the reassessment notice issued was beyond the statutory power prescribed under section 73A(b) and was quashed. Case review Merla Sitarama Prasad v.…

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