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TMI Blog1968 (11) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... , but the court of wards continued in possession of the estate until 3rd October, 1952, when the estate was released in favour of Maharani Padam Kunwari, mother of the late Raja, who was appointed as administrator of the estate by the Patna High Court Maharani Padam Kunwari died on 18th March, 1953, and Bhagwati Prasad Singh was appointed as administrator by the Patna High Court. Subsequently, by an order of that court dated 8th May, 1956, he was removed and Gauri Shanker Sahi was appointed receiver of the estate on 9th May, 1956. The Collector of Deoria took assessment proceedings under the U.P. Agricultural Income-tax Act against the court of wards for the assessment of the agricultural income of the estate for the year 1359 Fasli and made an assessment order on 6th November, 1952. That assessment was set aside in appeal. A second assessment order was made by the Collector on 5th November, 1956, against the court of wards. This assessment was also set aside in appeal and the case was remanded. Thereafter, an assessment under section 16(3) of the Act was again made by the Collector on 2nd April, 1957, but this time the assessment order was made against the receiver, Gauri Shanke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t he may also own or hold it in a representative capacity for another. He may be a trustee, receiver, manager, administrator or executor or occupy any other representative capacity. But whether he owns or holds the property for himself or for another it is the total agricultural income accruing to him which has been made the subject of charge. Section 3 clearly speaks of " the total agricultural income.........of every person. " That it is the person to whom the income accrues who bears the burden of the liability is borne out by the other provisions of the Act. Section 4 declares that agricultural income-tax shall be payable by a person whose total agricultural income of the previous year exceeds Rs. 4,200. Payment of the tax is contemplated by the person to whom the income can be said to belong. Section 4A provides for the computation of the total agricultural income of an individual in certain cases. Section 10 deals with the agricultural income accruing to or received by an undivided Hindu family. Section 11(1) deals with a case where a common manager, receiver, administrator or the like holds lands from which agricultural income is derived on behalf of persons jointly interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son, such Court of Wards, Administrator-General, Official Trustee, receiver or manager. " Section 161(1) declares that every representative assessee, as regards the income in respect of which he is representative assessee, shall be subject to the same duties, responsibilties and liabilities as if the income were received by or accruing to or in favour of him beneficially, and shall be liable to assessment in his own name in respect of that income. Any such assessment shall be deemed to be made upon him in his representative capacity only. Sub-sections (1) and (2) of section 11 of the U.P. Agricultural Income-tax Act and sections 160 and 161 of the Income-tax Act, 1961, are merely enabling sections. They enable the revenue to make an assessment on the representative assessee instead of a direct assessment on the person beneficially entitled to the income. An option is given to the revenue in the matter, whether to assess directly the person who is the beneficial owner of the income or instead to assess the representative assessee who initially receives the income. The scheme expressed in the U.P. Agricultural Income-tax Act, as in the Indian Income-tax Act, 1922, and the Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax directly on the person on whose behalf the agricultural income is received by such Court of Wards or Administrator-General or the Official Trustee. " Corresponding provision is to be found in section 41(2) of the Indian income-tax Act, 1922, and section 166 of the Income-tax Act, 1961. Reverting to the provisions of the U.P. Agricultural Income-tax Act, we find that section 12 provides for the exemption from assessment of agricultural income-tax in certain cases of sums received by the person who otherwise would be liable to pay tax in respect thereof. It clearly contemplates that it is the person who receives the income who is liable to pay the tax and not the person who comes on to the estate in some subsequent year. The position is further confirmed upon an examination of sections 15 and 16 of the Act which provide for the return of income and assessment. Under section 15(1), the Collector is empowered to publish a notice requiring every person whose total agricultural income during the previous year exceeds the maximum amount not chargeable to tax, to furnish a return of his total agricultural income during the previous year. Section 15(3) provides for individual noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It certainly was not Gauri Shanker Sahi who entered upon the scene as receiver some years later. It is urged on behalf of the revenue that the receiver, Gauri Shanker Sahi, was in the line of succession to the court of wards and as the income of the estate had to be assessed, he as successor of the court of wards was liable to be assessed. It is necessary to point out as was pointed out by Bachawat J. in Asit Kumar Ghose : " The estate of the deceased as such is not assessed to income-tax. The Appellate Tribunal was in error in thinking that the estate of the deceased was the assessee. In income-tax law the estate of the deceased as such is not a separate juristic entity or a corporation sole represented from time to time by managers and receivers. " What was said by that learned judge in respect of the position under the Bengal Agricultural Income-tax Act applies, in my opinion, with equal force to the position under the U.P. Agricultural Income-tax Act. In my judgment, the receiver, Gauri Shanker Sahi, was not liable to assessment in respect of the agricultural income of the year 1359 Fasli. The question is answered in the negative. The receiver, Gauri Shanker Sahi, is en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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