TaxTMI 
TaxTMI 
2000 (11) TMI 135
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.... for these years under the provisions of the Karnataka Agricultural Income-tax Act, 1957, the assessee filed appeals before the Assistant Commissioner of Agricultural Income-tax. On the assessee's applications for stay, the Assistant Commissioner passed orders on June 24, 1989, staying the recovery of the tax assessed subject to the payment. of a stated amount and the furnishing of a bank guarantee. The conditions of the stay orders were complied with. The appeals were thereafter dismissed by the Assistant Commissioner, on March 19, 1990. Thereupon, the bank guarantee was invoked and the balance of the amount of tax realized by the taxation authorities. On June 7, 1996, the Agricultural Income-tax Officer issued to the assessee a notice ....
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....." Sections 41 and 42 of the said Act read thus : "41. Tax when payable.---(1) Any amount specified as payable in a notice of demand under section 31 or an order under section 32, section 32A, section 34 or section 35, shall be paid within the time, at the place and to the person mentioned in a notice or order or if a time is not so mentioned, then, on or before the first day of the second month following the date of the service of the notice or order and any assessee failing so to pay shall be deemed to be in default. (2) If an assessee makes an application within the time mentioned in the notice of demand in section 31, for being allowed to pay the tax due, the Agricultural Income-tax Officer may in his discretion, by order in wr....
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....t of a month shall be proportionately determined. (2) Any tax assessed or any amount due under this Act from any assessee or any other person may, without prejudice to any other mode of collection, be recovered (a) as if it were an arrear of land revenue ; or (aa) by attachment and sale or by sale without attachment of any property of such assessee or any other person by such authority, in such manner, as may be prescribed ; (b) notwithstanding anything contained in the Code of Criminal Procedure, 1973 (Central Act 2 of 1974), on an application to any Magistrate, by such Magistrate, as if it were a fine imposed by him : Provided that where an assessee or other person who has appealed or applied for revision of any order made ....
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....ncreases with the delay. Section 42 speaks of an assessee in default. The question, therefore, is can an assessee be said to be in default during the period for which an order of stay of recovery of the tax due from him is operating ? The answer is indicated in the proviso to sub-section (2) itself Sub-section (2) empowers the collection of tax from an assessee in default as if it were an arrear of land revenue and as if it were a fine imposed by a magistrate under the Code of Criminal Procedure. The proviso says that where an assessee or other person has appealed or applied for revision of any order made under the said Act and has complied with an order made by the appellate or the revising authority in regard to the payment of tax, no ....