2007 (1) TMI 141

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....was pointed out that as per section 39(6) of the Agricultural Income-tax Act, 1991, any assessment other than those pending on the date of commencement of the Agricultural Income-tax Act, 1991, shall be completed within a period of two years from the date of filing of the return. It was stated that the return of income was filed as early as May, 1994 and hence the order should have been passed under section 39(6) by May, 1996. But the assessment order was passed only on June 15, 1998, and hence it was barred by limitation. The contention was repelled by the appellate authority. The assessee took up the matter before the Tribunal. The Tribunal also rejected the appeal and hence this revision. The following are the questions of law raised for....

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....his matter before July 1, 1993, and since it was filed on May 19, 1994, section 39(6) of the Agricultural Income-tax Act, 1991, would not apply. Learned counsel appearing for the Revenue made reference to the judgment of a Division Bench of this court in Valley Estates v. CCT [2007] 292 ITR 120 (Ker) S.T. Rev. No. 78 of 2004. We may point out that as per section 39(6) of the Agricultural Income-tax Act, 1991 any assessment, other than those pending on the date of commencement of the Act shall be completed within a period of 2 years from the date of filing of the return. For easy reference we may extract subsection (6) of section 39. "39.(6) Any assessment other than those pending on the date of commencement of this Act shall be comple....

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....ection 35, but has failed to furnish such return, the time-limit prescribed under section 41 shall apply." Section 39(1) specifically refers to section 35. We may extract sub-section (1) of section 39 for easy reference. "39. Assessment of agricultural income.-(1) If the Agricultural Income-tax Officer is satisfied that a return furnished under section 35 by an assessee is correct and complete, he shall by order in writing, make an assessment and determine the sum payable by the assessee on the basis of such return." On a combined reading of section 39(1) and section 35(1) it can be seen that the return referred to in section 39(6) is a return filed under section 35 of the Act. As per sub-section (1) of section 35 of the Act every ....