Compounding scheme assessments remain open to escaped-tax reassessment where the statute expressly extends that power.

A compounding scheme under section 13 of the Agricultural Income-tax Act operates as an alternate mode of assessment in place of the ordinary charging provisions, but tax determined under that scheme remains tax payable under the Act. Section 14 expressly extends section 41 reassessment powers to assessments made under section 13 where tax has escaped assessment, so the absence of a conventional income computation does not bar reopening. With sanction under section 41(2) obtained, the Assessing Officer was competent to revise the assessments, and the challenge to the reassessment notices failed.

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Issues: Whether proceedings for reassessment under section 41 of the Agricultural Income-tax Act, 1991 were maintainable in respect of assessments originally completed at the compounded rate under section 13 of the Act.

Analysis: The compounding provision under section 13 operates as an alternate mode of assessment in lieu of tax payable under the other provisions of the Act and has overriding effect over the general charging provision. Tax computed under the compounding scheme is nevertheless tax payable under the Act. Section 14 makes section 41 applicable to assessments under section 13 where tax has escaped assessment, so the absence of a conventional income computation does not exclude reassessment jurisdiction. Since sanction under section 41(2) had been obtained, the Assessing Officer was competent to proceed with revision of the assessments.

Conclusion: Proceedings under section 41 were held maintainable against assessments completed under section 13, and the challenge to the impugned notices failed.

Ratio Decidendi: Where a statutory compounding scheme functions as an alternate charging mechanism under the Act, reassessment provisions for escaped tax remain applicable if the statute expressly extends them to such assessments.

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