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TMI Blog1990 (10) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... verified in the prescribed manner, setting forth his total agricultural income during the previous year." By the amendment of section 18 by the Amendment Act of 1983 (in place of "first June every year", the words "expiry of four months from the end of the previous year") came to be substituted and a proviso added by which special provision was made in regard to filing of returns in respect of certain persons whose accounting year ended after March 31, 1982, but before the commencement of the Ordinance which was from December 1, 1982. Section 18(1) of the Act as amended reads as follows: "Every person whose total agricultural income during the previous year exceeded the maximum amount which is not chargeable to agricultural income-tax shall furnish to the Agricultural Income-tax Officer so as to reach him before the (expiry of four months from the end of the previous year) a return in the prescribed form and verified in the prescribed manner, setting forth his total agricultural income during the previous year." Since then, the provision has been further amended with which we are not concerned for the purpose of disposal of these writ petitions. The prayers in the writ pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , a return of the assessee-company was required to be accompanied by certain documents, viz., a copy of the auditors' report and a certificate in regard to the profit and loss account for the period in question. In the result, if the company's period of accounting was different from that of the financial year, then the audited balance-sheet would not be available and the return would be incomplete and, under such circumstances, such company would be penalised. We have carefully considered the arguments advanced by Sri Sarangan and it is best understood if illustrated in respect of the first of the contentions with reference to the position obtaining in the manner of filing of returns before and after the amendment. The petitioner in Writ Petition No. 7056 of 1983, admittedly, has his accounting year commencing from October 1, 1982, and ending on September 30, 1983. In accordance with the provision of sub-section (1) of section 18 of the Act before the amendment, he was required to file his return before the first June of the following financial year, as he certainly could not have filed it before that financial year in which his accounting year commenced. In other words, he had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of computation of income, every assessee is required to present his return within four months uniformly. But, in any event, four months' time to present the return in respect of the previous 12 months cannot be said to be an unreasonably short time so as to attract interference by this court with a right to carry on trade or occupation under article 19 of the Constitution. But, the real thrust of the argument of Sri Sarangan rested on possible changes in the law after the return was filed or before conclusion of the assessment on such return in the succeeding financial year commencing on first April of that year. Further, he placed reliance upon the observations of the learned authors in regard to section 4 of the Indian Incometax Act, 1922, at page 83 of the book, Kanga and Palkhivala on Income Tax Act, 7th edition, volume 1: "Law to be applied is that in force in assessment year.-Though the subject of the charge is the income of the previous year, the law to be applied is that in force in the assessment year, unless otherwise stated or implied ; and any amendment which is in force at the beginning of the relevant assessment year must govern the case though the amendment is ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Writ Petition No. 7056 of 1983 soon after he has filed his return on October 31, 1984, then it is the law enacted by the State as on November 1, 1983 that is applicable. If the assessment is not concluded and changes are brought about on April 1, 1984, then that law would be applicable to the "previous year", in which event the worst that may happen is that the authority may reopen under the relevant provisions of the Act and apply the law that will be in force. In deciding which law is applicable on the facts of each case, ultimately, this court or the Supreme Court has to have the last word. Therefore, if any difficulty arises, that itself cannot be said to be a ground for striking down a legislation which, as pointed out earlier, is to bring about uniformity in filing of returns irrespective of the period of accounting. We must, therefore, reject that contention as no undue hardship or undue restriction would be caused or imposed on the assessee. In the case of a tea company, our attention was drawn to the passage from Kanga and Palkhivala (7th edition, volume 1 at page 78) in respect of the previous year defined under section 3 of the Income-tax Act, 1961. That passage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has been declared by the Supreme Court in the case of Anglo-American Direct Tea Trading Co. Ltd. v. Commr. of Agrl. I. T. [1968] 69 ITR 667, that the Agricultural Income tax Officer shall not have jurisdiction to complete the assessment on the return of an agricultural income-tax assessee, if it is a tea company unless that tea company's assessment is cleared for the relevant period under the Income-tax Act. The passage relied upon by the learned author is as follows (headnote) : "The agricultural income taxable under the Kerala Act is 60 per cent. of the income so computed after deducting therefrom the allowances authorised by section 5 of the Kerala Act in so far as the same has not been allowed in the assessment under the Central Income-tax Act. There is no provision in the Kerala Act or the Rules made thereunder authorising the Agricultural Income-tax Officer to disregard the computation of the tea income made by the income-tax authorities acting under the Central Income-tax Act. If before the Agricultural Income-tax Officer proceeds to make the assessment under the Kerala Act, an assessment of income by the Income-tax Officer under rule 24 of the Income-tax Rules, 1922, or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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