Assessment on remand is provisional and may be negated if remand is set aside; provision includes post enactment income.

An assessment made pursuant to a remand order is provisional and does not oust the revisional forum; if the revising authority sets aside the remand, actions taken on remand (including subsequent assessments) fall with it and become ineffective. Separately, a provision that requires inclusion of a transferor's agricultural income looks to income arising in the assessment year from assets held or yielding income in that year irrespective of the date of transfer; therefore the provision applies to income arising after its insertion even where the asset was transferred earlier.

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Issues: (i) Whether an assessment passed by the assessing authority in pursuance of an order of remand remains valid and immune from a subsequent revisional order setting aside that remand; (ii) Whether section 4A of the Agricultural Income-tax Act (inserted by U.P. Act XIV of 1953) operates so as to include in the transferor's agricultural income income arising in assessment years after 1953 from assets transferred before the insertion of the section.

Issue (i): Whether an assessment made pursuant to an order of remand is subject to the ultimate result of an appeal or revision against the remand order.

Analysis: An assessment executed by the assessing authority in compliance with a remand order does not divest the superior appellate or revising forum of jurisdiction to entertain and decide an appeal or revision against the remand. Where the remand order is set aside by the revising authority, actions taken in pursuance of that remand (including assessments made on remand) fall with the remand order and are of no effect.

Conclusion: The assessment dated 14th December, 1959 made pursuant to the Additional Commissioner's remand was subject to the Board of Revenue's revision; setting aside the remand order restored the assessing authority's earlier order and rendered the subsequent assessment ineffective.

Issue (ii): Whether section 4A applies to income arising after its insertion from assets transferred prior to the insertion of the section.

Analysis: Section 4A focuses on inclusion of agricultural income of a transferor arising in the relevant assessment year from assets held or yielding income in that year, irrespective of the date of transfer. Precedent on analogous provisions in the income-tax context supports application of such a provision to income arising after insertion even where the transfer occurred earlier; the section's language embraces income from transferred assets in the assessment year without limiting application to transfers made after enactment.

Conclusion: Section 4A applies to include in the transferor's agricultural income income arising in assessment years after the section's insertion even where the asset transfer occurred before insertion; therefore section 4A could lawfully be invoked in the present assessments.

Final Conclusion: The revisional setting aside of the remand order restores the assessing authority's original decision and the statutory provision relied upon (section 4A) applies to the facts; consequently the writ petitions are without merit and dismissed with costs.

Ratio Decidendi: An assessment executed pursuant to a remand order is provisional and subject to the appellate or revising authority's ultimate decision setting aside that remand; a statutory provision that includes in the transferor's taxable income income arising in a post-enactment assessment year from assets transferred earlier operates with retrospective effect as to income in the assessment year, not as to the date of transfer.

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