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TMI Blog1969 (8) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... n the district of Cachar which they had purchased on January 1, 1948. They sold this estate on July 9, 1953. From January 1, 1948, to July 9, 1953, they carried on the business of cultivation, manufacture and sale of black tea at the said estate under a partnership of which they were the sole partners. The partnership firm was served with a notice under the Indian Income-tax Act, 1922, hereinafter called the Income-tax Act, and was assessed to income-tax for the assessment year 1951-52. Appeals were filed against the assessement order before the Appellate Assistant Commissioner of Income-tax and the Income-tax Appellate Tribunal, in which substantial reliefs were given to the assessee. After the sale of the tea estate these assessees ceased to have any agricultural income. The case of the assessees as laid in the writ petition was that on January 25, 1961, a letter was received by one of them from the Agricultural Income-tax Officer directing both the assessees to furnish returns of their agricultural income for the assessment years 1949-50 to 1953-54. Thereafter, they received a notice of demand under section 23 of the Act for payment of a certain amount as agricultural income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of correspondence. It was alleged in the petitions filed by the company that a letter was received dated January 23, 1960, from the Agricultural Income-tax Officer in which it was stated that the company had failed to submit the returns for the years 1950-51 to 1958-59 and it was asked to show cause why the assessments for these years should not be completed summarily. After further exchange of correspondence the company received an assessment order dated June 19, 1961, in repect of the assessment year 1951-52 which was made under section 20(4) of the Act together with a notice of demand for payment of a certain amount of agricultural income-tax. Similar assessment orders were passed under section 20(4) and demands created in respect of the assessment years 1952-53, 1953-54, 1954-55 and 1955-56. All these assessments were challenged by means of five petitions under article 226 of the Constitution. The main point raised in all these petitions was that unless individual notices under section 19(2) of the Act had been served no assessment could be made under section 20(4) except by way of proceedings under section 30 of the Act. In the returns which were filed by the Agricultural In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns 22 and 23 of the Income-tax Act 1922. Under section 19(1) of the Act the Agricultural Income-tax Officer before the specified date shall give notice by publication in the press, or otherwise, requiring every person whose agricultural income exceeds the limits of taxable income prescribed in section 6 to furnish within such period not being less than 30 days as may be specified a return in the prescribed from setting forth his agricultural income during the previous year. Sub-section (2) provides that in the case of any person whose total agricultural income is, in the opinion of the Agricultural Income-tax Officer, of such amount as to render such person liable to payment of agricultural income-tax for any financial year, he may serve in that financial year a notice requiring him to furnish within the prescribed period a return. Sub-section (3) enables a person who has not furnished a return within the time allowed by or under sub-section (1) or sub-section (2) to furnish a return or a revised return at any time before the assessment is made. Thus, sub-sections (1), (2) and (3) of section 19 of the Act are identical with and correspond to sub-sections (1), (2) and (3) of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aped assessment for any financial year, or has been assessed at too low a rate or has been the subject of undue relief under this Act, the Agricultural Income-tax Officer may, at any time within three years of the end of that financial year serve on the person liable to pay agricultural income-tax on such agricultural income or, in the case of a company on the principal officer thereof, a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 19, and may proceed to assess or reassess such income, and the provisions of this Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that sub-section :... " The principal contention raised on behalf of the appellant is that for an assessment to be made under section 20(4) of the Act it is not necessary that any proceedings should have been taken under section 30. The argument is that assessment proceedings commence with the publication of a general notice under section 19(1) and it is open to the Agricultural Income-tax Officer to make the best judgment assessment under section 20(4) without any limitation as to time. It is not necessary to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Regional Assistant Commissioner of Sales Tax, Nagpur with reference to the provisions of the Central Provinces and Berar Sales Tax Act, 1947. The following principles were laid down in that case which are noteworthy : (1) In the case of a registered dealer the proceedings before the Commissioner started factually when a return was made or when a notice was issued to him either under section 10(3) (under which the Commissioner has to issue a notice if no return is submitted) or under section 11(4) (which provides for the best judgment assessment) of the Sales Tax Act. The statutory obligation to file a return did not initiate the proceedings. (2) Once a statutory return was filed pursuant to a notice under section 10(3) or section 11 of the Sales Tax Act the proceedings did not come to an end until the final assessment was made. (3) The expression " escaped assessment " in section 11A of the Sales Tax Act included that of a turnover which had not been assessed at all because for one reason or the other no assessment proceedings were initiated and no assessment was made in respect thereof. Keeping in view the above principles it must be held that in the absence of a return ..... X X X X Extracts X X X X X X X X Extracts X X X X
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