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1. Validity of initiating proceedings under section 34 of the Agricultural Income-tax Act after a long lapse of time. Analysis: The judgment delivered by the High Court of Kerala pertained to a reference made by the Deputy Commissioner of Agricultural Income-tax and Sales Tax regarding the exercise of power under section 34 of the Agricultural Income-tax Act within a reasonable time frame. The case involved an assessee to agricultural income-tax for the assessment years 1959-60 to 1964-65. The Revenue contended that the assessee had transferred certain properties to his wife, which was not considered during the initial assessments. Consequently, the Deputy Commissioner initiated proceedings under section 34 in 1980 to revise the assessments made several years earlier. The court observed that the assessments for the relevant years were completed in 1962, 1963, and 1965, while the revision proceedings were initiated almost 15 years later in 1980. Citing the precedent set in Nelliampathy Tea and Produce Co. Ltd. v. Commr. of Agrl. I. T., the court emphasized the need for valid reasons to reopen assessments beyond the prescribed time limits under sections 35 and 36 of the Act. The court highlighted that the power under section 34 should be exercised bona fide and within a reasonable period, with a requirement for the Revenue to demonstrate exceptional circumstances for the delay. The Deputy Commissioner failed to provide any substantial justification for the delay in initiating the revisional proceedings under section 34. As a result, the court held that the proceedings were not commenced within a reasonable time and lacked a valid reason for the delay. Consequently, the court declared the revisional proceedings unauthorized, without jurisdiction, and barred due to the extended lapse of time. The order passed by the Deputy Commissioner in 1980 to revise the assessments was deemed invalid by the court. In conclusion, the court answered the reference question in the affirmative, stating that the proceedings initiated by the Deputy Commissioner under section 34 could not be sustained due to the significant delay. The court's decision highlighted the importance of adhering to reasonable time frames and providing valid justifications for revisiting assessments beyond the statutory limits, ensuring fairness and legality in tax proceedings.
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