Agricultural income-tax assessment turns on present possession of land; a discharged receiver is not taxable under the special machinery provision.

Agricultural income-tax liability under the Bihar Agricultural Income-tax Act, 1948 was held to depend on the charging provision in section 3, while section 13 operated only as a machinery provision for assessment of a receiver or similar person in present possession of the land at the time of assessment. The text states that "holds" in section 13 means current possession, so a discharged receiver who had already handed over possession before the return and assessment was not the proper person to be assessed under that section. On those facts, liability was to be determined against the person otherwise liable under section 3, and assessment on the petitioner was treated as proper.

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Issues: Whether agricultural income-tax could be assessed on the petitioner when the estate had been in the hands of a receiver during the accounting year but the receiver had been discharged before the return and assessment; whether section 13 of the Bihar Agricultural Income-tax Act, 1948 applied only when the receiver was in possession at the time of assessment.

Analysis: Section 3 is the charging provision and fixes liability on every person in respect of total agricultural income of the previous year. Section 13 is an exception and a machinery provision dealing with assessment of a receiver, common manager, or the like only where such person holds the land in possession and continues to hold it at the time of assessment. The expression "holds" indicates present possession. The provision also contemplates persons jointly interested in the land, which was not the situation here. Since the receiver had already been discharged and possession had been handed over to the petitioner before the return and assessment, section 13 did not apply, and the assessment could properly be made on the petitioner.

Conclusion: The petitioner remained liable to be assessed, and the contention that the receiver alone could be taxed was rejected.

Final Conclusion: The reference was answered against the assessee and in favour of the Department because the discharged receiver was not the proper person to be assessed under section 13.

Ratio Decidendi: A receiver is assessable under section 13 only when he is in present possession of the land at the time of assessment; if he has been discharged before assessment, liability falls to be determined under the charging provision against the person otherwise liable.

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