1974 (6) TMI 10

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..... t, 1961, was made on May 23, 1966, the assessing authority took the view that this extent should be taken into account for the purpose of composition in respect of the assessment year 1967-68 and in support of this view, he relied on the proviso to section 10 of the Madras Agricultural Income-tax Act, 1955. This view prevailed with the Commissioner. But the composition order on that view was quashed by Ramaprasada Rao J., he being of opinion that because of section 7 of the Land Reforms Act, the stated extent of land was not liable to be taken into account for the assessment year. The revenue appealed from his order. With respect, we are unable to share with the learned judge's view. Section 5 of the Land Reforms Act fixed the ceiling ar .....

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..... ith effect from that date be deemed to have been extinguished. It is clear from this provision that notwithstanding the declaration under section 7 as to the excess land which the person concerned will not be entitled to hold from the date of the commencement of the Act, his title thereto is not extinguished by vesting it in the Government from the commencement of the Act. But the vesting, as we said, with reference to section 18(3), takes place only on the date of the publication of the notification under section 18(1), and it is only then the title of the person who held the excess, in point of fact, though he was not entitled thereto, would stand extinguished. In our opinion, section 7 will not, therefore, have the operation of extinguis .....

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..... encement of the Act, that would have application only from March 1, 1972. In other words, the combined effect of the opening words of section 3 and of clause (a) of sub-section (2) of section 3 is that the amended provisions will leave transactions prior to March 1, 1972, unaffected. Section 3(2)(a) of the Amending Act will have to be read accordingly. The result is that if the notification under section 18(1) were made on or after March 1, 1972, its effect would be to vest the land in excess over the ceiling area with effect from the date of the commencement of the Act; but that would not be so if the notification preceded March 1, 1972. There remains then the question as to whether where the notification prior to March 1, 1972, took effec .....

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