S.1 Short title, extent and commencement

       (1) This Act may be called the Jammu and Kashmir Agricultural Income Tax Act, 1962.
       (2) It extends to the whole of the State.
[(3) It shall come into force with effect from 1st day of April, 1965.]

S.2 Definitions

       In this Act, unless the context otherwise requires,-
       [(1) "agricultural income" means-
       (a) any rent or income derived from land which is either assessed to land revenue or subjected to a local rate assessed and collected by the officer of the Government as such, and is used for
       (i) cultivation of saffron ;
       (ii) production of fruit and fruit plants.
       (iii) production of vegetables or seeds of vegetables, flowers or bulbs of flowers or flower plants ;
       (b) any income derived from such land by-
       (i) production or cultivation of saffron, fruit or fruit plants, vegetables or seed of vegetables, or flowers or bulbs of flowers

S.3 Charge of agricultural income tax

       Agricultural income tax at the rate or rates specified in the Schedule shall be charged for each year in accordance with and subject to the provisions of this Act and the rules framed thereunder on the agricultural income of the previous year of every person :
       [Provided that such tax shall not be payable by a person whose agricultural income of the previous year does not exceed rupees six thousand :]
[Provided further that such tax shall not be payable by a Hindu undivided family whose total agricultural income of the previous year does not exceed rupees eight thousand.]

S.4 Determination of agricultural income

       The agricultural income mentioned in section 3 shall deemed to be [the sum received, accrued or arisen] in the previous year on account of agricultural income after deducting an amount equivalent to twenty-five per cent of such income ;
       Provided that in the case of an assessee who produces complete accounts which are found to have been properly maintained by the assessing authority, the following amounts shall be deducted if so requested by the assessee, instead of the amount of 25% mentioned in this' sub-section
       (a) the sum actually paid in the previous year as revenue to the Government or as rent to the landlord or any local cess or rate, in respect of the land from which such agricultural income is derived ;
       (b) interest paid on any amount borrowed and actually spent on any capital expendit

S.5 Exclusion of income from trust, etc

Any income derived from property held under trust or other legal obligation wholly for religious or charitable purposes and, in the case of property so held in part only for such purposes, the income applied or finally set apart for application thereto, shall be exempt from liability to tax under this Act.

S.6 Agricultural Income accruing in the State to persons residing outside the State

In the case of any person residing outside the State all Agricultural Income accruing or arising to such person whether directly or indirectly through or from any land in the State shall be deemed to be derived within the State and shall be chargeable to Agricultural Income-tax in accordance with the provisions of the Chapter.

S.6(A) .

       (i) An application may be made to the assessing authority on behalf of any firm, constituted under an instrument of partnership specifying the individual shares of the partners, for registration for the purpose of this Act.
(ii) The application shall be made by such person or persons and at such times and shall contain such particulars and shall be in such form, and be verified in such maimer as may be prescribed and shall be dealt with by the assessing authority in such manner as may be prescribed.]

S.7 Return of Income

       (1) The assessing authority shall, ort or before the 1st day of April or on and such day as may be fixed by the Government, give notice by publication in the Government Gazette, and in such other manner as may be prescribed, requiring every person whose agricultural income during the previous year exceeded the maximum amount which is not chargeable to agricultural income tax, to furnish to such assessing authority and within such period, not being less than thirty days as may be specified in the notice, a return in the prescribed form and verified in the prescribed manner :
       Provided that the assessing authority may in his discretion extend the date for the delivery of the return in the case of any person or class of persons.
       (2) In the case of any person whose agricultural income is, in the opinion of the assessing authority, such amount

S.8 Assessment

       (1) If the assessing authority is satisfied that a return made under section 7 is correct and complete, he shall assess the agricultural income of the assessee and shall determine the sum payable by him on the basis of such return.
       (2) If the assessing authority has reason to believe that a return made under section 7 is incorrect or incomplete, he shall serve on the person who made the return a notice requiring him on the date to be specified therein either to attend at the office of the assessing authority or to produce or to cause to be produced any evidence in support of the return.
       (3) On the day specified in the notice issued under sub-section (2) or as soon afterwards as may be, the assessing authority, after examining such evidence as such person may produce and such other evidence as the assessing authority may require on specif

S.8(A) .

Notwithstanding anything contained in sections 7 and 8, the Commissioner may, in such circumstances, under such conditions and for such period as may be prescribed, permit any assessee applying in this behalf, to pay in lieu of the amount of tax payable by him under the provisions of this Act, a lump sum determined in the prescribed manner by way of composition and the sum so compounded shall be payable by assessee.

S.8(B) Assessment after partition of a Hindu undivided family

       (1) Where, at the time of making an assessment under section 8, it is claimed by or on behalf of any member of a Hindu undivided family hitherto assessed as undivided that partition has taken place among the members or groups of members of such family, the assessing authority shall make due enquiry into the matter and if a certified copy of a decree of a competent Civil Court for partition of the joint family property or a document purporting to show that there is separate possession and enjoyment of such property is produced, or in the case of a document other than a certified copy of decree, the assessing authority is satisfied that such document has been acted upon by the parties thereof, or if the assessing authority is otherwise satisfied that the Hindu undivided family has ceased to exist as such and the agricultural income is being enjoyed separately by the members or groups of the members of such family in definite sh

S.9 Penalty for concealment of income

       If an assessing authority in the course of any proceedings before him under this Act is satisfied that the assessee has concealed the particulars of his agricultural income or has deliberately furnished inaccurate particulars of such income and has thereby returned it below its real amount, he may direct that the assessee shall, in addition to the agricultural income tax payable by him, pay by way of penalty a sum not exceeding the amount of agricultural income tax which would have been avoided if the agricultural income so returned by the assessee had been accepted as the correct income :
       Provided that no such order shall be made unless the assessee has been heard or has been given a reasonable opportunity of being heard :
Provided further that no prosecution for an offence against this Act shall be instituted in respect of the same facts on which a penalty has been imposed und

S.10 Notice of demand

When the assessing authority has determined the sum payable by an assessee under section 8 or when an order has been passed under section 9 for the payment of penalty, the assessing authority shall serve on the assessee a notice of demand in the prescribed form specifying separately the amount of tax and penalty.

S.11 Appeal against assessment under this Act

       (1) Any assess objecting to the amount of rate at which he is assessed under section 8 or denying his liability to be assessed under this Act or objecting to any order against him [under section 4-A, 8-B and 9] made by the assessing authority may appeal to the appellate authority.
       (2) Every appeal under this section shall be presented within the prescribed period, but the authority before whom the appeal is filed may admit an appeal after the expiration of the prescribed period if it is satisfied that the applicant had sufficient cause for not presenting it within the prescribed period.
       (3) Every appeal under this section shall be presented in the presented form and shall be verified in the prescribed manner.
       (4) In disposing an appeal, the appellate authority may-
    &

S.12 Revision

       (1) The Commissioner may, on his own motion or on an application, call for the record of any proceeding under this Act pending before or decided by any authority subordinate to him and after such enquiry as he deems necessary may pass such orders as he thinks fit :
       Provided that no such application shall be entertained in any case where an appeal lay against the order but the applicant failed to prefer it within the time prescribed therefor :
       Provided further that the Commissioner shall not pass any order prejudicial to an assessee without giving him a reasonable opportunity of being heard.
(2) The application under sub-section (1) shall be made within six months from the date of service of the order complained of, but the Commissioner may, on proof of sufficient cause, entertain an application after the period so fixed.

S.13 Communication to assessee of order passed under section 11 or 12

An authority passing any final order under section 11 or section 12 shall communicate such order to the assessee.

S.14 Income escaping assessment

       If for any reason any agricultural income changeable to agricultural income tax has escaped assessment for any year or has been assessed at too low a rate the assessing authority may, at any time within three years of the end of that year, serve on the person liable to pay agricultural income tax on such agricultural income a notice containing all or any of the requirements which may be included in a notice under section 7 and may, upon service of such notice, proceed to assess or re-assess such income, and the provisions of this Act shall, so far as may be, apply accordingly as if the notice were a notice were a notice issued under that section :
Provided that the tax shall be charged at the rate at which it would have been charged if such income had not escaped assessment or full assessment as the case may be.

S.15 Rectification of mistake

       Any authority which passed an order of assessment or any order in appeal or revision may, on his own motion, or on an application by the assessee, at any time within three years from the date of such order, rectify any mistake apparent on the face of the record of the assessment, appeal or revision, as the case may be :
       Provided that no such rectification shall, if it has the effect of enhancing the assessment, be made unless the assessee has been given reasonable opportunity of being heard.
(2) Where any such rectification has the effect of reducing the assessment, the assessing authority shall refund the excess amount to the assessee.'

S.16 Power to take evidence on oath

       The assessing authority, the appellate authority and the Commissioner shall, for the purposes of this chapter, have the same powers as are vested in a Court under the Code of Civil Procedure, Svt. 1977 when trying a suit in respect of the following matters, namely :-
       (a) enforcing attendance of any person and examining him on oath or affirmation,
       (b) compelling the production of any document, and
(c) issuing commission for the examination of any witness.

S.17 Tax how payable

       (1) The amount specified in any notice of demand under section 10 or in any order communicated under section 13 shall be payable in four equal instalments.
       (2) The first instalment shall be paid within one month of the service of the notice of demand or communication of the order, as the case may be, and each-subsequent instalment within two months of the previous instalment.
       (3) If any instalment is not paid within the time allowed under subsection (2), the assessee shall be in default-
Provided that when an assessee has presented an appeal under section 11, the appellate authority, on application, may, on such terms and conditions as he may specify, direct that the assessee shall be treated as not being in default :

S.18 Penalty for default

       (1) When an assessee is in default in making a payment of agricultural income tax, the assessing authority may, in his discretion, direct that, in addition to the amount of the arrears, a sum not exceeding one quarter of that amount shall be recovered from the assessee by way of penalty.
(2) For the purposes of sub-section (1), the assessing authority may direct the recovery of any sum less than one quarter of the amount of the arrears and may enhance the sum so directed to be recovered from time to time in the case of a continuing default so that the total sum so directed to be recovered shall not exceed one quarter of the amount of the arrears payable.

S.18(A) .

       The Assessing authority may, at any time or from time to time, by notification in writing (copy of which shall be forwarded to the assessee at his last address known to the assessing authority), require any person from whom money is due or may become due to the assessee or any person who holds or may subsequently hold money for or on account of the assessee to pay the assessing authority either forthwith upon the money becoming due or being held at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount due by the assessee in respect of arrears of tax or fee or the whole of the money when it is equal to or less than the arrears of tax or fee.
       (2) The assessing authority may at any time or from time to time, amend or revoke any such notice or extend the time for making any payment in pursu

S.19 Recovery of penalties and time for recovery of any sum payable under this Act

The Collector may, on the motion of the assessing authority, recover any sum imposed by way of penalty under the provisions of this Act or where an assessee is in default the amount assessed as agricultural income tax as if it were an arrears of land revenue.

S.20 False verification

If any person makes a statement in a verification mentioned in section 7 or section 11 which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be deemed to have committed the offence described in [section 177] of the Jammu and Kashmir State Ranbir Penal Code, Svt. 1989.

S.21 .

       (1) A person shall not be proceeded against for an offence under section 20 except at the instance of the Commissioner.
(2) Before instituting proceedings against any person under sub-section (1), the Commissioner shall call upon such person to show cause why proceedings should not be instituted against him.

S.22 Failure to furnish return or to supply information

If any person fails without reasonable cause or excuse to furnish in due time any of the returns mentioned in section 7 or section 14, he shall be punishable with fine which may extend to twenty rupees for every day during which the default continues.

S.23 Bar of suits in Civil Courts

No suit shall be brought in any Civil Court to set aside or modify any assessment made under this Act and no prosecution, suit or other proceedings shall lie against any officer or the Government for anything in good faith done or intended to be done under this Act.

S.24 Appearance by authorised representative

Any assessee who is entitled or required to attend before any income-tax authority in connection with any proceeding under this Act, may attend either in person or by any person authorised by him in writing in this behalf.

S.25 Receipt to be given

A receipt shall be given for any money paid or recovered under this Act.

S.26 Power to make rules

       (1) The Government may make rules for carrying out the purposes of this Act.
       (2) In particular and without prejudice to the generality, of the foregoing power, such rules may-
       (a) prescribe the form of notice to be given by the assessing authority and the forms of return to be furnished by the assessee under section 7;
       (b) prescribe the form of the notice of demand mentioned in section 10 ;
       (c) prescribe the manner in which and the period, not being less than thirty days, within which appeal under section 11 shall be filed and the manner in which the memorandum of appeal shall be verified ;