Statutory notice period under agricultural income-tax law barred defaulter treatment and best judgment assessment

A notice under section 18(2) of the Mysore Agricultural Income-tax Act, 1957 had to be issued within the relevant financial year; a notice dated 19 February 1959 was therefore beyond the statutory period and without jurisdiction. Because the notice was invalid, the assessee could not be treated as a defaulter under section 18, and the best judgment power under section 19(4) was unavailable. The assessment order and the confirming orders were consequently held to be without jurisdiction and liable to be quashed, with refund of tax already recovered.

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Issues: Whether a notice issued under section 18(2) of the Mysore Agricultural Income-tax Act, 1957 after the end of the financial year was without jurisdiction, and whether an assessment made under section 19(4) on the footing that the assessee was a defaulter was valid.

Analysis: Section 18(1) was inapplicable to the assessment year in question because the Act came into force only on 1 October 1957. Section 18(2) could be exercised only during the relevant financial year, and the notice issued on 19 February 1959 was therefore beyond the statutory period. As the notice was illegal and without jurisdiction, the assessee could not be treated as a defaulter. In the absence of a valid default under section 18, the power to make a best judgment assessment under section 19(4) was not available.

Conclusion: The assessment order and the confirming orders were without jurisdiction and were liable to be quashed, with refund of tax already recovered.

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