Retrospective tax amendment displaced partner-wise composition for agricultural income-tax in assessment year 1992-93.

Retrospective amendment to the Tamil Nadu Agricultural Income-tax Act applied from 1 April 1992, so assessment year 1992-93 had to be governed by the amended scheme. The amendment substituted section 17(5) to make agricultural income-tax payable by the firm itself and omitted section 65(3), which had earlier allowed a partner to seek composition of the tax payable by him. As a result, partner-wise composition was no longer available for that year, and the Commissioner's revisional action under section 34 was justified in law.

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Issues: Whether, after the Tamil Nadu Agricultural Income-tax (Amendment) Act, 1992 came into force with retrospective effect from 1 April 1992, a partner of a firm could apply for composition of agricultural income-tax for assessment year 1992-93, and whether the Commissioner was justified in revising the Agricultural Income-tax Officer's order under section 34 of the Tamil Nadu Agricultural Income-tax Act, 1955.

Analysis: Before the amendment, section 17(5) of the Tamil Nadu Agricultural Income-tax Act, 1955 provided for assessment of partners in a registered firm and permitted the Agricultural Income-tax Officer, in the case of an unregistered firm, to proceed as if it were registered where the tax advantage so warranted. Section 65(3) then enabled any partner of such firm to seek composition of the tax payable by him, even though the firm itself was not entitled to apply. The amendment substituted section 17(5) so that, where the assessee was a firm, the agricultural income-tax became payable by the firm itself, and omitted section 65(3). Since section 1(2) of the Amendment Act gave it retrospective operation from 1 April 1992, the amended scheme governed assessment year 1992-93, which meant that partner-wise composition was no longer permissible for that year.

Conclusion: The partner's application for composition was not maintainable for assessment year 1992-93, and the Commissioner's revisional order was / justified in law.

Ratio Decidendi: Where an amendment to a taxing statute is given retrospective effect from a specified date, the assessment for the relevant year must be made under the amended provisions, and rights to composition or similar concessions available under the unamended law stand displaced to the extent of the retrospective amendment.

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