1972 (3) TMI 5 - HC - Income Tax

Madras Agricultural Income Tax Act - proviso to section 40, vests a discretionary power in the Agricultural Income-tax Officer to treat the assessee as not being in default, if he has filed an appeal - fact that the assessees are sound and in a position to pay the tax is not in itself a ground for refusing to exercise the discretion under the proviso to Section 40

Summary

The High Court of Madras quashed the orders of the Agricultural Income-tax Officer for not granting stay of tax collection to assessees who had filed appeals. The court held that the officer's discretion must be exercised in favor of the assessee unless there is a valid reason not to do so. The officer was directed to pass fresh orders within a week. Petitions allowed.