Tax recovery limitation under agricultural income-tax rules runs from initiation under the Revenue Recovery Act, not the later enforcement stage.

The proviso to section 40(1) of the Agricultural Income-tax Act, 1950 was treated as an assessee-protective, enabling provision that operates only when invoked during the pendency of a first appeal under section 31; on the facts, there was no proof that the assessee had been treated as not in default under that proviso. The Court also held that, for section 41(4), recovery proceedings commence when the competent authority issues a request or order for recovery under the Revenue Recovery Act, and that step was taken within the permitted period. The recovery action was therefore not time-barred and the challenge failed.

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Issues: Whether the recovery proceedings for agricultural income-tax were barred by limitation under the proviso to section 40(1) and section 41(4) of the Agricultural Income-tax Act, 1950.

Analysis: The proviso to section 40(1) was treated as an enabling provision intended for the assessee's benefit and operating only when the assessee invokes it and only during the pendency of a first appeal under section 31. The Court held that there was no proof that the assessee had been treated as not being in default under that proviso, and that the second limb of section 41(4) could not be applied on the facts. As regards the first limb of section 41(4), the Court held that recovery proceedings are commenced when the authority issues a request or order for recovery under the Revenue Recovery Act, which in the present case occurred within the permitted period.

Conclusion: The recovery proceedings were not time-barred and the challenge to the demand failed.

Final Conclusion: The assessment-based recovery action was held to be legally valid, and the original petition was dismissed.

Ratio Decidendi: For the purpose of the limitation provision governing recovery of tax, proceedings are commenced when the competent authority initiates recovery under the Revenue Recovery Act, and the proviso treating an assessee as not in default operates only as a discretionary, invoked protection during a first appeal.

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