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Issues:
Challenge to notice issued under s. 59 of the Estate Duty Act, 1953 based on s. 73A(b) - Jurisdiction of reassessment proceedings beyond prescribed period. Analysis: The writ petition challenges a notice issued by the Assistant CED under s. 59 of the Estate Duty Act, 1953, regarding the estate of a deceased individual. An assessment to estate duty was initially made on a specific date, followed by a reassessment later. The petitioner, as the accountable person, contests the notice based on sub-clause (b) of s. 73A of the E.D. Act, which sets limitations on the commencement of proceedings for reassessment. The contention is that the notice issued for reassessment is beyond the prescribed time limit as per s. 73A(b). Section 59 of the Act allows for reassessment by the Controller subject to the provisions of s. 73A. The petitioner's counsel argues that the notice issued falls outside the three-year period from the date of the original assessment, as mandated by s. 73A(b). Reference is made to the legislative intent behind the introduction of s. 73A and a decision of the High Court of Andhra Pradesh to support the interpretation that the date of assessment mentioned in the provision refers to the date of the original assessment under the E.D. Act. The court opines that the date of assessment in s. 73A(b) pertains to the date of the first assessment, and any reassessment must be initiated within three years from this date. Allowing reassessments without regard to the date of the first assessment could lead to perpetual proceedings, contrary to the legislative intent. The court rejects the argument that the date of assessment could be construed as the date of the last completed reassessment. Citing a decision of the Andhra Pradesh High Court, the court emphasizes that the date of assessment refers to the completion of the initial assessment. Consequently, the court holds that the notice issued for reassessment is beyond the statutory period prescribed by s. 73A(b) and quashes the notice. The respondent is restrained from taking any further proceedings based on the said notice. Each party is directed to bear their own costs in the matter.
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