1965 (8) TMI 9 - HC - Income Tax

Kerala Agricultural Income Tax Act 1950 - petitioner prays to call up and quash by a writ of certiorari or any other writ or direction or order the certificate issued under section 41(3)for the recovery of arrears of tax from the petitioner and to quash the said certificate

Summary

Issues Involved:
1. Validity of the certificate issued under Section 41(3) of the Kerala Agricultural Income-tax Act.
2. Interpretation of "commencement of proceedings" under Section 41(4) of the Kerala Agricultural Income-tax Act.
3. Compliance with notice requirements under the Travancore-Cochin Revenue Recovery Act.

Detailed Analysis:

1. Validity of the Certificate Issued Under Section 41(3) of the Kerala Agricultural Income-tax Act:
The petitioner sought to quash the certificate issued under Section 41(3) of the Kerala Agricultural Income-tax Act for the recovery of arrears of tax, surcharge, and penalty for the assessment years 1960-61, 1961-62, and 1962-63. The petitioner argued that the certificate was issued beyond the statutory limit of three years from the date fixed for payment, which was June 30, 1961, as per exhibit P-1. The court noted that the certificate was issued for the consolidated amount due for all three assessment years and was forwarded to the Collector for recovery under the Revenue Recovery Act.

2. Interpretation of "Commencement of Proceedings" Under Section 41(4) of the Kerala Agricultural Income-tax Act:
The petitioner contended that the proceedings for recovery commence only when the Collector issues a notice to the petitioner after receiving the certificate from the Agricultural Income-tax Officer. The court, however, found this argument unconvincing. The court referenced Section 46(7) of the Indian Income-tax Act, 1922, and various judicial precedents, including Governor-General in Council v. Shiromani Sugar Mills Ltd. and Arunadevi Jajodia v. Collector of Madras, to conclude that the issuance of the certificate itself constitutes the commencement of proceedings. The court held that the forwarding of the certificate by the Income-tax Officer to the Collector initiates the recovery process, thus falling within the three-year limitation period prescribed by Section 41(4).

3. Compliance with Notice Requirements Under the Travancore-Cochin Revenue Recovery Act:
The petitioner also argued that he had not received the required notice of attachment under Section 24 of the Travancore-Cochin Revenue Recovery Act. The court declined to investigate this issue within the scope of the present petition, which was solely to quash the certificate issued by the Agricultural Income-tax Officer. The court noted that the petitioner could pursue this matter in separate, appropriate proceedings if so advised.

Conclusion:
The court dismissed the petition, holding that the recovery proceedings were not barred by the provisions of Section 41(4) of the Kerala Agricultural Income-tax Act, as the certificate was issued within the statutory limit. The court also suggested that any issues regarding the validity of the attachment proceedings should be addressed in separate legal actions. The petition was dismissed with costs.