DAVID R P Vs. AGRICULTURAL ITO

JUDGEMENT

(1.) THESE petitions are to quash the orders of the Agricultural Income-tax Officer, dated January 11, 1972. The matter related to the assessment year 1971-72. By petitions dated December 27, 1971, and January 1, 1972, the assessees, on the ground that they had filed appeals, invoked the proviso to Section 40 of the Madras Agricultural Income-tax Act, 1955, and asked for stay of collection of that part of the tax covered by the appeals. The petitions were dismissed. Reason for dismissal is stated thus:

(2.) WE are clearly of opinion that the orders of the Agricultural Income-tax Officer cannot be sustained. Section 40 occurs in Chapter VI relating to recovery of tax and penalties. It gives discretion to the Agricultural Income-tax Officer to make a demand of the tax in such number of instalments, within such time, at such place and in such manner as may be prescribed. If an assessee fails to pay tax as demanded, he would be considered to be in default. The section has a proviso which says :