Limitation bars agricultural income-tax recovery proceedings, but penalty proceedings may still be initiated absent a statutory time bar.

Recovery proceedings for agricultural income-tax were barred by limitation because section 41(4) prevented commencement after the prescribed period computed from the latest date fixed for payment in the demand notice, or from the date of appellate disposal where an appeal existed. On the facts, the revenue recovery action was time-barred and could not stand. The court also held that no provision was shown imposing a time bar on initiation of penalty proceedings after assessment, so the notice remained valid to that extent.

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Issues: Whether recovery proceedings for agricultural income-tax were barred by limitation and whether the notice could still sustain threatened penalty proceedings.

Analysis: The statutory bar under section 41(4) prevents commencement of recovery proceedings after the prescribed period calculated from the latest date fixed for payment in the notice of demand, or, where appeal proceedings are involved, from the date on which the appeal is decided. On the facts, the recovery action was beyond time and therefore could not be sustained. The judgment also noted that no provision was shown which imposed any embargo on initiation of penalty proceedings after a specified time from assessment.

Conclusion: The notice was quashed to the extent it sought recovery by revenue recovery proceedings, but it was not quashed insofar as it threatened penalty proceedings.

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