Statutory exemption continued after legislative change, shielding the estate from agricultural income-tax and invalidating the assessment.

A statutory exemption issued under the earlier Cochin Income-tax Act continued in force after repeal and re-enactment because the general clauses rule preserved it, and later legislation did not expressly or necessarily withdraw it. The exemption was read as defining the taxable field itself, so it extended to later-imposed taxes within that field unless removed by clear subsequent legislation. On that basis, the V.T.K. Estate remained protected from agricultural income-tax for the 1962-63 assessment year, and the assessment notice and order were liable to be quashed.

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Issues: Whether the exemption notification issued under the Cochin Income-tax Act continued to operate after subsequent legislative changes so as to protect the V.T.K. Estate from agricultural income-tax for the assessment year 1962-63.

Analysis: The notification exempted members of the Cochin Ruling Family from tax in respect of all incomes except specified categories. It was issued under the earlier Cochin Income-tax Act and, by reason of the general clauses provision governing repeal and re-enactment, continued in force under the later Cochin Income-tax Act. The later legislative changes, including the introduction of agricultural income-tax and the eventual repeal of the Cochin income-tax legislation in relation to agricultural income, did not expressly withdraw the exemption. The exemption was treated as delimiting the taxable field itself, and as covering later-imposed taxes within that field unless clearly taken away by subsequent legislation.

Conclusion: The exemption remained operative and extended to agricultural income-tax. The V.T.K. Estate was not assessable to agricultural income-tax for the assessment year 1962-63, and the assessment notice and order were liable to be quashed.

Ratio Decidendi: A statutory exemption expressed in wide terms continues to protect the exempted class against later taxes falling within its scope, unless the exemption is expressly or necessarily withdrawn by subsequent legislation.

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