JHALAK PRASAD SINGH Vs. PROVINCE OF BIHAR

JUDGEMENT

(1.) THE plaintiffs are zamindars holding a permanently settled estate in the district of Patna in this Province. On March 17, 1939, a notice was served on them by the agricultural income-tax authorities of this Province under Section 17(2) and other sections of the Bihar Agricultural Income-tax Act calling upon them to make a return of their agricultural income for the previous year to enable an assessment to agricultural income-tax to be made. THE plaintiffs have declined to make such and claim that the provincial agricultural income-tax authorities have no power to call for such a return, the present suit has been filed claiming declaratory relief to that effect.

(2.) THE suit was originally instituted in the Court of the first subordinate Judge, Patna. THE points involved are difficult and of very great importance and with the consent of all the parties the case was transferred to this Court for hearing and disposal. In view of the importance of the case to all persons interested in agriculture in this Province, this Special Bench has been constituted to hear the matter. In para 1 of the plaint, it is stated that the plaintiffs are zamindars holding a permanently settled estate. THEn follow a number of paragraphs purporting to describe the position of zamindars before and after the Permanent Settlement Regulation (Regulation 1 of 1793). In para 6 it is said that the Permanent Settlement Regulation is an Act of Parliament, and in para 7 it is pleaded that as the Bihar Agricultural Income-tax Act is repugnant to a Governor-Generals Act or a Parliamentary Statute and purports to alter the character of the permanent settlement the previous sanction of the Governor-General was necessary to the introduction of the Bill in the Legislature and further that the Bill should have been reserved for signification of His Majestys pleasure. In para 8 it is stated that the Bihar Agricultural Income-tax Act directly infringes the rights granted by Regulation 1 of 1793 and as it repeals either directly or indirectly such regulation it is ultra vires. In para 9 it is pleaded that the Bihar Agricultural Income-tax Act is ultra vires as the previous sanction of the Governor under Section 299, Government of India Act, 1935, and of the Governor-General under Section 108(2)(b) of that Act was not obtained before the introduction of the Bill before the local Legislature. In Para 10 it is stated that the powers given in Article 41, List II, Schedule 7, Government of India Act, 1935, enable the Provincial Government only to tax agricultural income from estates other than those permanently settled. In para 11 the fact that return was demanded from them by the income-tax authorities is stated and in para 14 it is said that the necessary notice under Section 80, Civil Procedure Code, was served on April 18, 1939, on the defedants, the Provincial Government, through the Collector of Patna. THE reliefs claimed by the plaintiffs are as follows :