Statutory levy for delayed composition payment upheld where the admitted tax under the composition scheme was remitted after the due date.

Belated payment of the composition amount under the Karnataka Agricultural Income-tax Act, 1957 attracts section 42 because the composition scheme under section 66, read with rule 32(2) and Form No. 23, requires payment by the stipulated date. Default arises by operation of the statute when the admitted amount is not paid on time, and a separate assessment order or demand notice is not necessary for section 42 to apply. The levy is treated as a compensatory statutory charge for delay in remitting a quantified tax liability, and it was upheld as valid and enforceable.

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Issues: Whether penalty or interest under section 42 of the Karnataka Agricultural Income-tax Act, 1957 could be levied for belated payment of the composition amount due from an assessee who had opted for payment under section 66 of the Act.

Analysis: The composition scheme under section 66, read with rule 32(2) and Form No. 23, required payment of the composition amount by the stipulated date. The assessee had not paid the full admitted amount within time and remitted the balance only later. In such a case, the default arises by statutory operation itself, and the absence of a separate assessment order or demand notice does not prevent the application of section 42. The amount payable under section 42 is treated as a compensatory statutory levy for delay in remitting a quantified tax liability, rather than a discretionary exaction.

Conclusion: The levy under section 42 was held to be valid and enforceable against the assessee.

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