Suo motu revision requires reasons before cancelling statutory composition of agricultural income-tax permissions.

A revisional authority exercising suo motu power cannot cancel a statutory permission for composition of agricultural income-tax without recording reasons. Where the assessees, after dissolution of a firm, were permitted composition under the Act, the Commissioner set aside that permission and directed individual assessment, but the order was unsustainable because it did not justify interference with the composition already granted. The revisional order was therefore invalid, and the permission for composition of tax stood restored in favour of the assessees.

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Issues: Whether the Commissioner could, in exercise of suo motu revision, set aside the permission granted for composition of agricultural income-tax without assigning reasons.

Analysis: The assessees, being erstwhile partners after dissolution of the firm, had sought composition of tax and the Agricultural Income-tax Officer had permitted it under the Act. The Commissioner exercised suo motu power under section 34 and cancelled that permission, directing individual assessment on the basis of returns filed. The order was found unsustainable because the Commissioner gave no reasons for invoking the revisional power and did not justify interference with the permission already granted for composition of tax under section 65.

Conclusion: The revisional order was invalid and the permission granted for composition of tax was restored in favour of the assessees.

Final Conclusion: The applications succeeded and the assessee's right to composition of tax remained undisturbed.

Ratio Decidendi: A revisional authority exercising suo motu power must record reasons for interfering with an order granting statutory composition of tax; an unreasoned revisional order cannot be sustained.

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