Tax
No tax can be imposed by inference: a reassessment set aside
What the Court held
In M/s Shiv Steels v. State of Assam (Supreme Court of India, 11.09.2025; 2025 LiveLaw (SC) 921), the Court set aside a reassessment under the Assam General Sales Tax Act that had been begun after the original assessment had already become time-barred. It held that administrative approval cannot resurrect an expired limitation period, and that, as a matter of principle, no tax can be imposed by inference.
Why it matters
Limitation in tax is not a technicality but a substantive protection: once the time to assess or reassess has passed, the demand cannot be revived by sanction or by reading the statute expansively. For a taxpayer facing a reopened assessment, the decision is a reminder to check the limitation position first, because it can be decisive on its own.
This note is general information on the law as at the date shown, not legal advice on any specific matter. The law changes; for advice on your facts, please speak to the firm.
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