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Four petitions under article 226 of the Constitution of India regarding agricultural income-tax composition and cancellation of permissions for assessment years 1966-69. Analysis: The judgment by KOSHAL J. of the High Court of MADRAS addresses four petitions challenging the cancellation of agricultural income-tax composition permissions by the Commissioner of Agricultural Income-tax, Madras. The petitioners, two brothers owning arecanut gardens, had applied for composition of tax for the assessment year 1966-67, which was granted by the Income-tax Officer in August 1966. However, in 1968, the Commissioner issued notices proposing to cancel the permissions granted and requiring fresh returns for the assessment year 1968-69. The petitioners contended that their applications were governed by the 1958 Act, even after its repeal in 1966, citing the Tamil Nadu General Clauses Act, 1891, for protection of their entitlement under the repealed Act. The judgment delves into the legislative history, highlighting the amendments to the 1955 Act and the subsequent repeal of the 1958 Act by the 1966 Act. It emphasizes the confusion in applying the provisions of the Acts by the income-tax authorities, leading to the erroneous grant of permissions extending beyond the intended period. The court, relying on the General Clauses Act, upholds the petitioners' entitlement to composition under the 1958 Act for the assessment year 1966-67. However, it clarifies that for the subsequent years, the provisions of the 1958 Act, allowing composition for 12 months at a time, do not apply, thereby denying relief for the assessment years 1967-68 and 1968-69. In the final verdict, two petitions are dismissed concerning the assessment years 1967-68, while the other two succeed partially. The court restores the composition permission for the assessment year 1966-67 as granted by the Income-tax Officer, setting aside the Commissioner's order. Importantly, the judgment specifies that the relief granted or refused does not impact any pending proceedings before the agricultural income-tax authorities for the subsequent assessment years. Each party is directed to bear their own costs in all four petitions.
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