Reassessment under agricultural income-tax law requires a clear reopening basis; vague notice and delay made the orders unsustainable.

A completed assessment under section 35 of the Tamil Nadu Agricultural Income-tax Act cannot be reopened unless the reopening notice clearly discloses the ground and the material relied upon. A vague notice that fails to inform the assessee of the basis for revision denies a proper opportunity to meet the case. The delay of several years between issuing the notice and passing fresh assessment orders also caused serious prejudice. In the absence of any disclosed basis for alleged escapement of income, the reassessment lacked justification. The reassessment orders and the appellate orders were therefore unsustainable and were set aside.

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Issues: Whether reassessment orders passed under section 35 of the Tamil Nadu Agricultural Income-tax Act could be sustained when the notice was vague, the basis for reopening was not disclosed, and the fresh orders were made after an inordinate delay.

Analysis: A completed assessment cannot be reopened except in strict conformity with law. A notice which does not clearly state the ground for reopening or the basis for the proposed revision does not enable the assessee to meet the case against him. Where the authority issues a notice and then remains silent for several years before passing a fresh assessment order, the resulting prejudice to the assessee is serious. Section 35 does not confer arbitrary power to reopen proceedings without informing the assessee of the precise reason for revision or the material relied upon. In the absence of any disclosed basis for the alleged escapement of income, the reassessment could not be justified.

Conclusion: The reassessment orders and the appellate orders were unsustainable and were set aside, with the revision petitions allowed.

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