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Issues:
1. Validity of the notice issued under section 25 of the U.P. Agricultural Income-tax Act. 2. Legality of the assessment made based on the notice. 3. Whether filing the return as directed in the notice amounts to a waiver of any defect in the notice. Detailed Analysis: Issue 1: The primary issue in this case revolves around the validity of the notice issued under section 25 of the U.P. Agricultural Income-tax Act. The notice in question, dated June 14, 1954, required the assessee to file a return the next day, which the assessee contended did not comply with the statutory requirement of specifying a period not less than thirty days for filing the return. The court held that the notice must specify a period for filing the return, and failure to do so renders the notice incomplete. The court emphasized that the statute necessitates the specifying of a definite period for filing the return to ensure compliance and avoid penalties. Consequently, the notice issued on July 14, 1954, was deemed invalid as it did not meet the requirements of a notice under section 15(3) of the Act. The court's decision on this issue was in the negative. Issue 2: The legality of the assessment made based on the defective notice was also deliberated. The court established that a valid notice under section 25 is a jurisdictional requirement for initiating assessment proceedings for income that has escaped assessment or been assessed at too low a rate. Citing previous judgments, the court reiterated that an assessment consequent to an invalid notice must be deemed illegal. As the notice issued in this case was found to be invalid, the assessment made against the assessee was declared illegal. The court's response to this issue was in the affirmative. Issue 3: The final issue addressed whether filing the return as directed in the defective notice amounted to a waiver of any objection to the notice's validity. The court examined the concept of waiver, emphasizing that for a waiver to be effective, there must be a voluntary relinquishment of a known right with full knowledge of the relevant facts. The court concluded that the mere act of filing a return does not automatically imply waiver, especially if the party was not fully aware of the right to object. The burden of proving waiver rested with the State, and since there was no evidence indicating the assessee's full knowledge or intentional relinquishment of the objection, the court answered this issue in the negative. In conclusion, the judgment focused on the procedural and jurisdictional aspects of the notice issued under the U.P. Agricultural Income-tax Act, highlighting the importance of compliance with statutory requirements and the implications of invalid notices on subsequent assessments.
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