Compounded-rate assessments can be reopened for escapement of tax; limitation may be cured by statutory permission.

Section 13's compounding scheme is an alternate charging mechanism operating in lieu of tax under section 3, yet a determination of tax under section 13(1) nonetheless constitutes agricultural income-tax payable under the Act; section 14 makes section 41 applicable to assessments under section 13 in cases of escapement of tax, permitting reopening under section 41(1). Permission under section 41(2) cures limitation where granted, and assessments under section 35(2) and (4) read with section 41(1) may be invoked to assess escaped tax even when the original assessment was at the compounded rate under section 13.

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Issues: Whether assessments made under section 13 (payment of tax at the compounded rate) of the Agricultural Income-tax Act, 1991 can be reopened under section 41 of the Agricultural Income-tax Act, 1991 on the ground of escapement of tax.

Analysis: Section 13(1) provides an alternate scheme for payment of agricultural income-tax by compounding based on cultivated area and operates in lieu of tax charged under section 3; section 13 is therefore an exception to the general charging mechanism. Determination of tax under section 13(1), though not involving detailed income computation, constitutes agricultural income-tax payable under the Act. Section 14 makes section 41 applicable to assessments under section 13 in cases involving escapement of tax. Permission under section 41(2) cures limitation where granted. Consequently, proceedings under section 41(1) and assessments under section 35(2) and (4) read with section 41(1) are available to assess escaped tax even where the original assessment was at the compounded rate under section 13.

Conclusion: Assessments made under section 13 of the Agricultural Income-tax Act, 1991 can be reopened under section 41 of the Agricultural Income-tax Act, 1991 for escapement of tax; the impugned notices for revision under section 41 are maintainable and are upheld.

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