Judgement

SATYANARAYANA RAJU, J.: This appeal, by special leave, against the judgment and order of the Kerala High Court, dated July 25, 1963 in Income-tax Referred Case No. 10 of 1962 (Agricultural) raises the question as to the true scope and operation of S. 2 of the Kerala Surcharge on Taxes Act, 1957 (Ker. Act XI of 1957), hereinafter called the Surcharge Act.

2. The facts which have given rise to this appeal may be briefly stated. For the assessment year 1957-58, the appellant company was assessed to agricultural income-tax under the Kerala Agricultural Income-tax Act, 1950. In the assessment, a surcharge at the rate of 5 per cent on the agricultural income-tax and super tax was also levied and collected from the appellant under the provisions of the Surcharge Act.

3. The appellant appealed to the Deputy Commissioner of Agricultural Income-tax and Sales Tax, South Zone, Quilon, objecting to the imposition of surcharge on the ground that the law applicable to assessment for 1957-58 under the provisions of the Agricultural Income-tax Act was the law in force on April 1, 1957 and as the Surcharge Act which came into force only from September 1, 1957 did not have any retrospective ef