Ramaswami, J.

1. This case is stated by the Board of Agricultural Income-tax under Section 25(1) of the Bihar Agricultural Income-tax Act (Act VII (7) of 1938).

2. On 28th December 1945, the Agricultural Income-tax Officer of Darbhanga made an order of assessment holding that the agricultural income of Maharaja of Darbhanga was Rs. 37,43,520 for the accounting year 1944-45. The assessee had claimed a sum of Rs. 2,82,192 as capital receipt according to the terms of a zarpeshgi lease. The claim was accepted by the Agricultural Income-tax Officer who completed the assessment on 28th December 1945. The Assistant Commissioner approved the assessment and demand notice was issued. The assessee paid two out of three instalments of the amount of tax but, on 22nd March 1946, the Agricultural Income-tax Officer issued notice under Sec.26 on the ground that agricultural Income from Gaya zarpeshgi lease should have been taxed.

In response to the notice the assessee filed a fresh return and after examination, of the accounts the Agricultural Income-tax Officer determined the net income from the Gaya zarpeshgi lease to be Rs. 2,50,879 and after adding it to the total income imposed a tax