Trust land cannot be clubbed with personal holdings for agricultural income-tax compounding; excess tax is refundable.

Compounding of agricultural income-tax under section 65 applies only to the assessee's own holding, because the statutory charge under section 3(1) and the definition of "hold" in section 2(nn) cover possession and enjoyment as owner, tenant, mortgagee in possession or maintenance-holder. Land held merely as trustee falls outside that concept and cannot be clubbed with absolute holdings for compounding or assessment. The assessing authority had to verify the true nature of the lands even in compounding proceedings, so the trust lands could not be included in the aggregate holding and tax collected on that incorrect basis was refundable.

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Issues: Whether lands held by the assessee as trustee could be clubbed with lands owned by her absolutely for the purpose of compounding agricultural income-tax, and whether tax collected on that basis was refundable.

Analysis: Section 65 of the Tamil Nadu Agricultural Income-tax Act, 1955 permits compounding of agricultural income-tax only in relation to the assessee's own holding. The charge under section 3(1) is on the assessee's total agricultural income, and the statutory definition of "hold" in section 2(nn) contemplates possession and enjoyment as owner, tenant, mortgagee in possession, or maintenance-holder. Property held merely as trustee does not fall within that definition. Once it was found that the assessee owned only 18.36 ordinary acres, the balance lands held in trust could not be included in the compounding basis. The assessing authority was bound to examine the true nature of the holding even in compounding proceedings, and the assessee's earlier application could not justify assessment on an incorrect aggregate holding.

Conclusion: The trust lands could not be clubbed with the assessee's absolute holdings for compounding or assessment, and the excess tax collected on that basis was refundable.

Ratio Decidendi: Compounding under section 65 can operate only on the assessee's own taxable holding, and land held merely in trust is outside the statutory concept of "holding" for that purpose.

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