COMMR OF AGRL INCOME TAX Vs. PANAMPUNNA ESTATES

JUDGEMENT

(1.) The reference is at the instance of Commissioner of Agricultural Income Tax. It arises out of an order passed by the Kerala Agricultural Income Tax Appellate Tribunal Additional Bench, Kottayam in AITA No. 56 of 1982. The relevant assessment year is 1972-'73 for which the accounting year was from 1.4.1971 to 31.3.1972. The following questions are referred by the Tribunal to this Court pursuant to a judgment of this Court in O.P. 6249/90:-

(2.) The assessee firm filed its return of agricultural income for the first time in respect of the assessment year 1972-'73. The return was filed before the Agricultural Income Tax Officer, Kottayam on 13.2.1973. A notice under S.18(2) was issued on 11.9.1975 and the pre-assessment notice was issued on 13.3.1976. The firm submitted its reply on 27.3.1976. The assessment order was passed on 29.3.76 and it was communicated to the assessee on 5.4.1976 in the old form under the Travancore Cochin Agricultural Income Tax Act, 1950. Thereafter the assessment order was again communicated to the assessee in the proper form on 12.11.1976.

(3.) The first question arising for consideration is whether the assessment made in the year 1972-'73 is barred in view of the provisions contained under S.35(2) of the Kerala Agricultural Income Tax Act, 1950. S.35(2) as it stood before amendment by Act 13 of 1976 provided that no order of assessment under S.18 or assessment or re-assessment under sub-s. (1) of S.35 shall be made after the expiry of the three years from the end of the year in which the agricultural income was first assessable. If the period prescribed under the un-amended section is to be applied, then the assessment should have been complied by 31.3.1975. If that be so, the assessment order now passed on 29.3.1976 whether communicated on 5.4.1976 or 12.11.1976 is barred. But the contention raised on behalf of the Revenue is that since three years provided under sub-s. (2) of S.35 had been substituted by five years by Act 13 of 1976, which replaced Ordinance 13 of 1975, it should be taken that the assessment was completed within the time prescribed, since five years would expire only on 31.3.1977.