STATE Vs. JOTHMAL GIRDHARILAL

JUDGEMENT

(1.) THIS case and Miscellaneous Civil Case No. 121 of 1958 relate to the assessment of M/s Jethmal Girdharilal to agricultural income -tax under the Bhopal State Agricultural Income -Tax Act, 1953, for the assessment year 1953 -1954. The assessing authority determined the amount of tax and super tax payable by the assesses at Rs.34,644 -8 -0. This amount was, however, reduced in appeal to the Revenue Commissioner to Rs. 5470/ - The assesses, however, felt aggrieved by this assessment and moved the Revenue Commissioner under section 23 of the Act for a reference to this Court of certain questions of law arising out of the order of assessment. The Revenue Commissioner granted this application in part and has referred to this Court only one question for decision, namely, "whether assessment under Bhopal Agricultural Income Tax Act, 1953, can be made on the applicants for the year 1953 -54 on the basis of their previous year's income for the year 1952 -53 in view of the fact that the Act came into force from 15 -7 -1953". That reference is the subject -matter of Miscellaneous Civil Case No. 116 of 1958. The assesses desired that the Commissioner should refer questions about the status of the assesses -firm, deductions, and validity of notice also to this Court for opinion. The Revenue Commissioner rejected this prayer holding that the question about the status of the assesses was one of fact and the other questions raised were vague and did not involve any question of law which could be referred to this Court. The assesses has, therefore, filed Miscellaneous Civil Case No. 121 of 1958 for requiring the Commissioner to refer to this Court all the questions stated in paragraph 5 of the petition.

(2.) THE principal question to be decided in these cases is whether the assesses -firm is liable to any tax at all on the agricultural income received by it in the year 1952 -53. To decide this question, it is necessary to set out the relevant provisions of the Act. The Act was placed on the statute book in 1953. Section 1 (iii) provided that it shall be deemed to have come into force on such date as the State Government may, by notification, appoint. The Act was, however, brought into force from a date after its enactment viz. from 15th July 1953. Section 2(11) defines "previous year" as meaning "the twelve months ending on the 31st day of May preceding the year for which the assessment is to be made." The definition of the word 'year' has been given in section 2 (15) as "the agricultural year as defined in the Bhopal State Land Revenue Act, 1932." That Act gives the definition of "agricultural year" in section 2 (3) as follows: -

(3.) IT must be noted that it was with a view to enable the Government to bring into force the Act from a date prior to the issue of a notification under section 1 (iii), to wit, 1st July 1953 that it was provided in section 1 (iii) that the Act shall be deemed to have come into force on such date as the State Government may, by notification, appoint. But the State Government did not think it proper to take advantage of this provision and to issue a notification bringing the Act into force from 1st July 1953 so as to make the year beginning from that date as an assessment year within the meaning of the Act. If the Government had an intention to make the income received by the assesses in the year 1952 -53 taxable, it should Have expressed that intention clearly by the issue of a proper notification about the date of coming into force of the Act. The settled principle of construction of a taxing Act is that one has to look merely as to what is clearly said and the subject cannot be taxed unless he comes within the letter of the law. In a taxing Act there is no roam for any intendment. The learned Revenue Commissioner utterly failed to appreciate the true meaning of the terms "previous year" and "assessment year" and the date of the coming into force of the Act when he rejected the objection of the assesses as regards the non -liability for tax by merely saying that the 'previous year' meant the year commencing from the 1st June 1952 and ending on 31st May 1953 and that there was no question of giving retrospective effect to the Act. On a fair construction of the language used in the relevant sections of the Act the only conclusion that can be reached is that the assesses had no previous year at all beginning on 1st June 1952 and ending on 31st May 1953 within the meaning of the Act and, therefore, the assesses -firm is not liable to be taxed on the income received in that year. The answer to the question referred to must, therefore, be that no assessment can be made on the assesses on the basis of its income in the year 1952 -1953.