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TMI Blog1965 (12) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... Raja Yadvendra Dutt Dube---hereinafter called "the respondent"---under section 16(3) of the U. P. Agricultural Income-tax Act, 1948, to pay agricultural income-tax for the account period 1355 Fasli (July 1, 1947, to June 30, 1948), on a net income of Rs. 72,769-15-2. Being of the view that a part of the income of the respondent had escaped assessment, the Collector of Jaunpur by order dated June 9, 1950, recomputed tax under section 25 read with section 16(4) of the Act for the said account period on a total net income of Rs. 80,859-13-6. In appeal by the respondent the Agricultural Income-tax Commissioner by order dated March 5, 1952, set aside the orders of the Collector and also of the Sub-Divisional Officer and directed that the assessment be reopened by the Collector and fresh assessment of the income for 1355 Fasli be made after giving notice to the respondent. In the view of the Commissioner, assessment made by the Sub-Divisional Officer was without jurisdiction, and the order of reassessment by the Collector "being in review and substitution of the order of assessment", want of jurisdiction in the order of assessment attached to the order of reassessment as well. The res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sub-division. income does not exceed Rs. I lakh. (b) Collector. In all cases. (c) Officer appointed under In such cases as may be prescribed." proviso to sub-section (1). Section 15, in so far as it is material, provides : "(1) The Collector shall . . . give notice, by the publication in the Official Gazette and in such other manner as may be prescribed, requiring every person.... whose total agricultural income during the previous year exceeded the maximum amount which is not chargeable to agricultural income-tax to furnish to such assessing authority and within such period, not being less than thirty days, as may be specified in the notice, a return in the prescribed form and verified in the prescribed manner, setting forth ... his total agricultural income during the previous year.... (3) In the case of any person whose total agricultural income is, in the opinion of the assessing authority, such amount as to render such person liable to payment of agricultural income-tax in any year, he may serve in that year a notice in the prescribed form requiring such person to furnish within such period, not being less than thirty days as may be specified in the noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with power as the assessing authority within his, revenue jurisdiction, where the gross agricultural income of an assessee does not exceed Rs. 1 lakh. Power of the assessing authority under section 15(3) to issue a special notice calling for a return may be exercised within the year of assessment, and not thereafter. Power to reassess under section 25 is also restricted and the assessing authority may not issue a notice of "escaped assessment" after one year from the end of the year of assessment. It is necessary to remember that these proceedings come before us in appeal against the order passed by the High Court on a reference made under section 24. Jurisdiction of the High Court under section 24 is advisory : the High Court must answer the question referred to it and cannot travel outside the terms of the reference. This caution is necessary because learned counsel appearing for the parties have sought to canvass many questions which were never raised before the Board and even before the High Court. The question whether the order passed by the Board setting aside the orders of assessment of the Sub-Divisional Officer and of the Collector and even of the Commissioner is justi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Officer found that the total gross income of the respondent exceeded Rs. 1 lakh, and under section 14(2) the Collector alone was the assessing authority in respect of the income of the respondent. The contention raised by counsel for the State that by the expression without prejudice to the generality of the provisions of sub-section (1) in sub-section (2) of section 14 power is intended to be conferred upon the Assistant Collector in charge of a sub-division to assess income of an assessee whose gross agricultural income exceeds Rs. 1 lakh, cannot be accepted. The first sub-section of section 14 declares the Collector and the Assistant Collector in charge of a sub-division as assessing authorities within the limits of their respective revenue jurisdictions. By sub-section (2) it is directed that the authorities mentioned in sub-section (2) shall be the assessing authorities in the cases "mentioned against each". Reading sub-sections (1) and (2) together there can be no doubt that the Collector is the assessing authority within his revenue jurisdiction with unlimited jurisdiction, and the Assistant Collector in charge of a sub-division is the assessing authority within his reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for Fasli year 1355 be made by the Collector after giving notice to the respondent. The Board thereafter passed the same order which the Commissioner claimed without authority to make. It must, therefore, be held that the notice issued by the Sub-Divisional Officer was not only unauthorised, but was also quashed by the Board. The second contention that when notice under section 15(1) is issued, the Collector may without a notice under section 15(3) commence fresh assessment proceeding on the return made to the Sub-Divisional Officer has no substance. This question does not appear to have been raised or argued at any stage before the Board. Again, if the proceedings for assessment were commenced on a return made pursuant to an invalid notice, and the proceeding for assessment were set aside on the ground of want of jurisdiction of the authority making the assessment, the entire proceeding must be deemed to be vacated, and relying upon the return made to the authority who had assessed the income, another authority cannot proceed to assess the income of the assessee. Mere issue of a notice under section 15(1) cannot come to the aid of the Collector in commencing fresh assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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