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TMI Blog1981 (7) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 58(3) read with section 59 of the Estate Duty Act, 1953 ("the Act"). 3. The original assessment was made by the Assistant Controller on 31-7-1971. The Assistant Controller issued a notice under section 59 on 28-8-1974. There is no dispute regarding these dates and the issue of the notice under section 59. No notice under section 59 was issued prior to this date. In the additional grounds, it has been submitted that under the provisions of section 73A of the Act no proceedings for the levy of estate duty in the case of reassessment shall be commenced after the expiration of three years from the date of assessment of such property to estate duty. The contention of the accountable person is simply that the reassessment was commenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In this regard, it is pointed out that the statute does not impose any obligation upon the Assistant Controller to make any particular enquiry or investigation before reopening an assessment and that in order to reopen an assessment under section 59(b) it is only necessary for the Assistant Controller to act upon information coming into his possession. Since it was not necessary for the Assistant Controller to have made any pre-reopening enquiry and since it is only necessary for the Assistant Controller to have satisfied himself that the reopening under section 59(b) is necessary, the expression of such satisfaction in the order sheet and consequential direction to the office to issue notice under section 59 would be sufficient to meet t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty to estate duty under this Act. Section 59 provides for the consideration by the Controller of property escaping assessment. It is analogous to section 147 of the 1961 Act and contains two limbs (a) and (b). Acting under either of these limbs, the Controller may at any time subject to the provisions of section 73A require the person accountable to submit an account as required under section 53 and may proceed to assess or reassess such property as if the provisions of section 58 apply. Section 58 provides for the making of the assessment and is analogous to sections 143 and 144 of the 1961 Act. The manner in which the proceedings for reassessment can commence is provided in section 59. It lays down that the Controller may require the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 28 of the 1922 Act/section 271 of the 1961 Act are to be commenced is, therefore, different from the manner in which the proceedings for reassessment under section 59 of the Act. Under the latter provision, it is not merely enough for the Controller to entertain a reasonable belief that property had escaped assessment to Estate Duty. It is further necessary for the Controller to establish contract with the accountable person in the form of an intimation requiring submission of an account. 7. We do not, therefore, agree with the departmental representative that the interpretation of the position under section 28 of the 1922 Act in the case of Artisan Press Ltd. v. ITAT and of section 275 of 1961 Act in the case of Durga Timber Wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner and the observations at page 254 are relevant in the context of the case. The question there was about the commencement of the recovery proceedings under the U.P. Agricultural Income-tax Act. The commencement there is akin to the commencement of the reassessment proceedings here. It was not merely a decision on the part of the ITO to issue a notice to the Recovery Officer. It was necessary under the relevant provisions that the decision of the ITO to issue a request to the Recovery Officer to commence recovery is to be communicated to the Recovery Office. It is only when that particular step, namely, the communication is taken that the commencement of the recovery proceedings was considered to have taken place. The position under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted a return...." The following commentary at p. 565 on this particular aspect of section 73A read with section 59 in the book The Estate Duty Act, 3rd edn. by D.H. Nanavati and H.D. Nanavati also expresses the same opinion: "The relevant date of commencement of reassessment proceedings referred to in section 73A is the date on which a notice under section 59 of the Act is issued notwithstanding the fact that such notice may not specify the particular property in regard to which the allegation is made that it has escaped assessment. See Narasimha Rao v. Assistant Controller of Estate Duty, AP [1971] 80 ITR 662 at p. 666, considered further at pages 581-582 and also at pages 585 and 586." 10. In view of the foregoing, we hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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