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Issues:
1. Jurisdiction of Deputy Commissioner under section 34 of the Kerala Agrl. Income-tax Act, 1950. 2. Validity of suo motu assumption of jurisdiction by Deputy Commissioner under section 34. 3. Whether statutory appeal under section 32 should be exhausted before resorting to revisional powers under section 34. Analysis: The judgment delivered by the High Court of Kerala pertains to two references concerning the assessment years 1966-67 and 1967-68. The main issues revolve around the jurisdiction of the Deputy Commissioner of Agrl. Income-tax under section 34 of the Kerala Agrl. Income-tax Act, 1950. The questions posed seek clarification on the correctness of the Deputy Commissioner's actions in revising assessment orders and interfering with the findings of the Appellate Assistant Commissioner. The factual background involves an assessee primarily engaged in pineapple cultivation, with a series of assessments, appeals, and modifications leading to the Deputy Commissioner's suo motu exercise of revisional powers. The crux of the matter lies in whether the Deputy Commissioner's assumption of jurisdiction under section 34 is justified or lacks authority. The argument presented questions the Deputy Commissioner's interference with the order of the Appellate Assistant Commissioner dated March 16, 1972, without exhausting the statutory appeal provisions under section 32. The contention emphasizes that resorting to revisional powers without availing the appeal mechanism violates natural justice principles and disregards statutory procedures outlined in the Act. It is highlighted that the statutory remedy of appeal under section 32 should precede any revisional actions under section 34, especially when the appellate remedy is time-barred. The legal counsel's submissions are supported by a previous decision of the court, emphasizing the importance of following the prescribed procedures under sections 32 and 34 of the Act. The court's analysis underscores that the revisory power under section 34 should be exercised in compliance with the provisions of the Act, particularly subject to the appeal mechanisms outlined in section 32. The court's interpretation indicates that the Deputy Commissioner's intervention post the Appellate Assistant Commissioner's order of finality on March 16, 1972, through suo motu revision, contravenes the statutory framework and principles of natural justice. In conclusion, the court rules in favor of the assessee on all three questions raised. It asserts that the Deputy Commissioner's actions under section 34 were not justified, and the statutory appeal route under section 32 should have been pursued before resorting to revisional powers. The judgment emphasizes the importance of adhering to statutory procedures and upholding principles of natural justice in matters of tax assessment and revision. A copy of the judgment is to be forwarded to the Agricultural Income-tax Appellate Tribunal, Addl. Bench, Trichur, as per legal requirements.
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