Agricultural income tax liability under the new enactment governed the relevant year; assessment under the old Act was invalid.

Agricultural income for the previous year ending 31 May 1957 fell within the Mysore Agricultural Income-tax Act, 1957 because section 3 made the charge operative from 1 April 1957. The earlier assessment under the Mysore Agricultural Income-tax Act, 1955 had no legal basis for that year, as the relevant income was assessable only under the 1957 Act. Questions framed to the extent they depended on the old Act were answered against the revenue, and the assessment order under section 32 was set aside as having been made under the wrong enactment, in favour of the assessee.

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Issues: Whether agricultural income for the previous year ending 31 May 1957 could be assessed under the Mysore Agricultural Income-tax Act, 1955, or whether such assessment lay only under the Mysore Agricultural Income-tax Act, 1957.

Analysis: Section 3 of the Mysore Agricultural Income-tax Act, 1957 made the charge operative from 1 April 1957, so agricultural income for the relevant financial year fell within the new statutory regime. The earlier assessment made under the Mysore Agricultural Income-tax Act, 1955 was therefore without legal basis for that year. The questions framed to the extent they depended on the old Act were answered against the revenue, while the order under section 32 was liable to be set aside because the assessment had been made under the wrong enactment.

Conclusion: The assessment for the relevant previous year was not permissible under the Mysore Agricultural Income-tax Act, 1955 and was valid only under the Mysore Agricultural Income-tax Act, 1957; the assessment made under the old Act was invalid and had to be set aside, in favour of the assessee.

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