1966 (11) TMI 2

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....ct, 1950, provides that agricultural income-tax at the rate or rates specified in the Schedule to that Act shall be charged for each financial year in accordance with and subject to the provisions of that Act on the total agricultural income of the previous year. Sub-sections (3) and (4) of that section as they stood on the date of the assessment orders, March 14, 1962, read as follows : "(3) In the case of an undivided Aliyasanthana family or branch or Marumakkathayam tarwad including a Nambudiri family or a family like that of the Moothathu or any other class governed by the law applicable to Nambudiries consisting of more than five members and whose agricultural income exceeds six thousand rupees, the tax shall be assessed at the aver....

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....r under section 36 of the Agricultural Income-tax Act, 1950, was passed by the first respondent assessing the Illom at the rate indicated in sub-section (3) of section 3. That order is exhibit P-2 dated August 17, 1964, and it is the validity of that order that is challenged before us. Sub-section (1) of section 36 provides that the Agricultural Income-tax Officer may at any time within three years from the date of any assessment order passed by him, of his own motion; rectify any mistake apparent from the record of the assessment. If this provision can be invoked, then exhibit P-2 is clearly within time as it is within three years of the date of the four assessment orders concerned, namely, March 14, 1962. The contention of the petit....

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....issioner of Income-tax, the court referred to section 34 of the Indian Income-tax Act, 1922, and said : "Section 34 refers to a specific case, namely, the case where an income chargeable to income-tax has escaped or has been assessed at too low a rate. It may escape assessment leaving the rate unchanged, in which case it is only the amount of the assessment that will have to be raised owing to the rise in the taxable income, or it may escape assessment in such a way that, if rectified, it would take the income beyond a certain rate ; for example it may give the figure to be over Rs. 40,000 in which case it will be assessed at 0-1-6 inst ead of 0-1-0 and the rate will therefore be higher." In In re Chotay Lal, the Income-tax Officer th....