Temporary Ordinance liability survives lapse when the taxable period falls within its operative tenure.

Surcharge inserted by the Karnataka Agricultural Income-tax (Amendment) Ordinance, 1980 remained enforceable for assessment year 1980-81 because the Ordinance was operative during the relevant assessment period. The fact that the assessment order was passed after the Ordinance had lapsed did not remove a liability that had already arisen while it was in force. A temporary Ordinance continues to govern matters arising from the period of its operation, and assessments for that period must be made under it. The surcharge was therefore validly levied, and the recovery challenge failed.

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Issues: Whether surcharge levied under the Karnataka Agricultural Income-tax (Amendment) Ordinance, 1980 could be sustained in the assessment for assessment year 1980-81 even though the assessment order was passed after the Ordinance had lapsed.

Analysis: The Ordinance was in force for a period that fell within assessment year 1980-81 and had inserted a surcharge provision in the Schedule to the principal Act. The mere fact that the assessment order was made after the Ordinance ceased to operate did not eliminate the liability already attracted for the relevant assessment period. An Ordinance, though temporary in duration under Article 213 of the Constitution of India, continues to govern matters arising out of the period during which it was operative, and assessments relating to that period must be made in accordance with it.

Conclusion: The surcharge was validly levied, and the challenge to the recovery notice failed.

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