38. No assessment after five years.-

(1) No assessment under Section 36 or 37 shall be made after the expiry of five years from the end of the tax period to which the assessment relates:

provided that in case of offence under this Act for which proceeding for prosecution has been initiated, the limitation as specified in this sub-section shall not apply.

(2) Any assessment made or penalty imposed under this Chapter shall be without prejudice to prosecution for any offence under this Act.