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Issues involved:
The judgment involves three main issues: 1. Validity of an order of assessment passed by the Agricultural Income-tax Officer under section 31(1) of the Assam Agricultural Income-tax Act, 1939. 2. Justification of upholding the order of the Assistant Commissioner of Taxes setting aside the order of rectification passed under sub-section (1) of section 31 of the Act. 3. Confirmation of the order of the Assistant Commissioner of Taxes setting aside the order of rectification without providing notice and reasonable opportunity to the assessee as per the proviso to sub-section (1) of section 31 of the Act. Issue 1: The assessee, engaged in tea cultivation business, challenged an assessment order where the Agricultural Income-tax Officer enhanced the assessment without giving any opportunity, following an audit objection. The Assistant Commissioner of Taxes set aside the order due to the lack of notice and opportunity, directing a fresh proceeding. The Board of Revenue upheld this decision, prompting the assessee to approach the High Court. Issue 2: The contention revolved around the jurisdiction of the appellate authority to direct the Assessing Officer to initiate a fresh proceeding. The High Court emphasized that the appellate authority cannot confer jurisdiction beyond what the Assessing Officer possesses. It was highlighted that if the assessment was already time-barred, giving such a direction would be illegal. The court noted that the appellate authority should only direct assessments in accordance with the law, which was not done in this case. Issue 3: The High Court held that the direction given by the appellate authority and upheld by the Board of Revenue was erroneous. The court emphasized that the Assessing Officer must determine if the assessment was barred or not, and a blanket direction without considering this aspect was improper. Consequently, the court answered all three questions in the negative and in favor of the assessee, emphasizing the importance of following due process and legal jurisdiction in assessment proceedings. Separate Judgment: No separate judgment was delivered by the judges in this case.
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