TaxTMI 
TaxTMI 
TaxTMI 
1968 (8) TMI 21
X X X X Extracts X X X X
X X X X Extracts X X X X
....(1) of the Act for submission of the return for the purpose of agricultural income-tax on April 13, 1955, for the assessment year 1955-56. According to the departmental authorities a notice was also issued under section 19(2) on September 16, 1955, to the respondents by the Agricultural Income-tax Officer for submission of a return for the same year which was followed by reminders sent on April 30, 1956, and April 15, 1958. It is, however, not disputed that the respondents themselves filed a return on May 31, 1958, relating to agricultural income for the assessment year 1955-56. On April 7, 1959, the Agricultural Income-tax Officer made all assessment order under section 20(1) of the Act and a notice of demand was issued under section 33 on....
X X X X Extracts X X X X
X X X X Extracts X X X X
....30 in such circumstances. The High Court decided the petition in favour of the respondents primarily on the following considerations : (1) Once agricultural income has escaped assessment in any financial year then such income could be assessed within the period prescribed or laid down in section 30, namely, a period of three years by taking the steps indicated in that section. In the present case the agricultural income was received for the first year in the year 1954-55 and had to be assessed in the financial year 1955-56. Since no assessment had been made in that Financial year it had escaped assessment. Thus, section 30 was directly attracted. As the assessment was made on April 7, 1959, which was beyond three years from the expiry of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....evious year." Section 20 of the Act is similar to section 23 of the Income-tax Act. Section 30 which deals with escapement of income-tax is in the following terms : " If for any reason any agricultural income chargeable to agricultural income-tax has escaped assessment for any financial year, or has been assessed at too low a rate (or has been the subject of undue relief under this Act), the Agricultural Income-tax Officer may, at any time within three years of the end of that financial year, serve on the person liable to pay agricultural income-tax on such agricultural income or, in the case of a company on the principal officer thereof, a notice containing all or any of the requirements which may be included in a notice under sub-sect....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ut of the second contention raised before us. On the admitted fact that a general notice under section 19(1) was published and that a return was filed by the respondents in respect of each of the two assessment years in question it is not possible to see how section 30 would become applicable at all. Sub-section (3) of section 19 says in categorical terms that if any person has not furnished a return within the time allowed by or under sub-section (1) or sub-section (2) he may furnish a return at any time before the assessment is made and any return so made shall be deemed to be made in due time under the section. In Commissioner of Income-tax v. Ranchhoddas Karsondas a public notice under section 22(1) of the Income-tax Act was published o....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... filed pursuant to a general notice even after the expiry of the period mentioned in that notice, the Income-tax Officer must proceed to assess the income by taking up that return. He cannot ignore that return and serve on the assessee a notice under the provisions relating to escaped income which was section 34 in the Income-tax Act. This view also finds support from the decision of this court in Commissioner of Income-tax v. S. Raman Chettiar in which it was laid down, inter alia, that section 22(3) of the Income-tax Act, 1922, permitted an assessee to furnish a return at any time before the assessment was made, namely before the time mentioned in section 34(3) of that Act. In the present case it is not disputed, and cannot indeed be disp....