Transferee liability for agricultural income-tax arrears arises only after statutory conditions for recovery from the transferor are first met.

A transferee of land cannot be fastened with liability for the transferor's agricultural income-tax arrears unless the statutory preconditions in the proviso to section 23 are satisfied. The Department must first establish that the transferor cannot be found or that recovery from the transferor is otherwise not possible, and the transferee must be given an opportunity to show that recovery can still be pursued against the transferor. Where the transferor remains available and disputes recovery, direct proceedings against the transferee are not justified. Recovery notices and attachment proceedings against the transferee were therefore quashed.

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Issues: Whether the petitioner, as transferee of land, could be proceeded against for recovery of agricultural income-tax arrears of the transferor under section 23 of the Agricultural Income-tax Act without satisfaction of the statutory conditions in the proviso.

Analysis: Section 23 makes the transferee liable only in the situations covered by the proviso, namely where the transferor cannot be found or where tax assessed on the transferor cannot be recovered from him. The statutory scheme requires the Department to establish that recovery from the transferor is not possible and to afford an opportunity to show otherwise before proceeding against the transferee. On the facts, the transferor was available and disputed the recovery, while also seeking an opportunity to challenge the assessment for the relevant year. In these circumstances, direct recovery from the petitioner was not justified.

Conclusion: The recovery notices and attachment proceedings against the petitioner were quashed, and no further recovery steps were permitted against her in respect of the property sold to her.

Final Conclusion: Recovery from a transferee cannot be sustained unless the statutory preconditions for fastening such liability are satisfied, and the transferee is not to be proceeded against when the transferor remains available for recovery or contest.

Ratio Decidendi: Liability of a transferee for the transferor's agricultural income-tax arrears arises only upon fulfilment of the statutory conditions in the proviso to section 23, and recovery cannot be enforced against the transferee without first establishing that recovery from the transferor is unavailable.

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