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KERALA AGRICULTURAL INCOME TAX ACT, 1991
An Act to provide for the levy of tax on Agricultural Income in the State of Kerala.
Whereas it is expedient to provide for the levy of tax on Agricultural Income in the State of Kerala;
Be it enacted in the Forty-second Year of the Republic of India as follows: -
(1) This Act may be called the Kerala Agricultural Income Tax Act, 1991.
(2) It extends to the whole of the State of Kerala.
(3) It shall come into force on such date as the Government may, by notification in the Gazette, appoint.
In this Act unless the context otherwise requires,
(1) "agricultural income" means-
(a) any rent or revenue derived from land Which is used for agricultural purposes;
(b) any income derived from such land by-
(i) agriculture, or
(ii) the performance by a cultivator or receiver of rent-in-kind of any process ordinarily employed by a cultivator or receiver of rent-in-kind to render the produce raised or received by him ,fit to be taken to market, or
(iii) the sale by a cultivator or receiver of rent-in-kind of the produce raised or received by him, in respect of which no process has been performed other than a process of the nature described in sub-clause (ii);
(c) any income derived from any building owned and occupied by the receiver of the rent or revenue of any such land, or occupied by the cultivator or the recei
(1) Tax at the rate or rates specified in the Schedule to this Act shall be charged for each assessment year in accordance with and subject to the provisions of this Act, on the total agricultural income of the previous year of every person.
Provided that no tax is payable by any person other than a company or a firm where the total extent of landed properties, the agricultural income from which is assessable at his hands under the provisions of this Act do not exceed five hectares.
(1) Subject to the provisions of this Act, the total agricultural income of the previous year of any person comprises of all agricultural income derived from land situated within the State and received by him within or outside the State, but does not include, -
(a) any agricultural income derived from land situated outside the State.
(b) any agricultural income derived by cultivation of paddy, tapioca, plantain, ginger, ragi, pulses, sesamum, vegetable, sweet potato, tubers, sugarcane, jack, mango, pineapple, orchid, or other flowers, vanila, turmeric and guava,
(c) share income received by a partner from any firm on which tax has been paid by the firm.
(2) The following income shall be deemed to be agricultural income received in the previous year, namely: -
(i) any amount received in the previous year from the Indian Coffee Board in respect of Coffee delive
The agricultural income of a person shall be computed after making the following deductions, namely: -
(a) (i) any sum paid in the previous year on account of land revenue or any tax in lieu thereof due to the Government;
(ii) local rates and cess and municipal taxes in respect of the land from which the agriculture income is derived;
(b) any rent paid in the previous year in respect of the land from which the agricultural income is derived;
(c) any expense incurred in the previous year on the maintenance of any irrigation or protective work constructed for the benefit of the land from which the agricultural income is derived.
Explanation. - "Maintenance" includes repairs and all such work, as may be necessary from year to year for repairing any damage or destruction caused to protective dykes and embankments by flood or other natural causes;
Notwithstanding anything contained in Section 5, the following amounts shall not be deducted in computing the agricultural income-
(a) any sum paid on account of any rate or tax levied on the agricultural income;
(b) any sum by way of interest, salary, bonus, commission or remuneration paid by the firm to any of its partners;
(c) in the case of any private limited company, any expenditure incurred which results directly or indirectly in the provisions of any remuneration, or benefit or amenity or perquisite to an employee, if in the opinion of the Agricultural Income Tax Officer any expenditure or allowance is excessive or unreasonable, having regard to the legitimate needs of the company for deriving agricultural Income and the benefit derived by or accruing to it therefrom;
(d) Where the assessee incurs any expenditure in respect of which payment has been or is to be made to any
(1) In respect of depreciation of buildings, machinery, plant or furniture owned by the assessee and used by him for the purpose of deriving the agricultural income the following deductions shall subject to the conditions hereinafter provided be allowed: -
(i) such percentage on the written down value of the building, machinery, plant or furniture, as may, in any case or class of cases be prescribed;
(ii) where the building has been newly erected or the machinery or plant has been newly installed, a further sum subject to such conditions as may be prescribed:
Provided that if the building erected or machinery or plant installed, was not put to use in the year of erection or installation, the further deduction under this clause shall be allowed in the year in which such assets were first put to use:
Provided further that the above deductions shall be allowed only if the prescribed
Tax shall not be payable by an assessee who is a member 0f an association of persons or a body of individuals on that portion of the amount which he is entitled to receive from the association or body of individuals on which tax has already been paid by the association or body of individuals.
(1) In the case of an assessee being an individual, association of persons, body of individuals or firm, while computing the amount of agricultural income tax on the total agricultural income chargeable for an assessment year, there shall be allowed as rebate from the amount of agricultural income tax (as computed before allowing deductions under this section) twenty per cent of the following subscription or contribution namely: -
(i) any sum paid in the previous year by the assessee out of his agricultural income towards life Insurance Premia or National Savings Certificate or National Savings Scheme or any other fund or scheme approved by the Government in this behalf and on such conditions as may be prescribed-
(a) to effect or to keep in force an insurance, on the life of the assessee or on the life of the spouse or any child of the assessee or deposited in the name of these persons where the assessee is an individual;<
Where the agricultural income is derived from lands situated partly within the State and partly without the State, agricultural income tax shall be levied under this Act-
(i) where the portion of such income attributable to the lands situated within the State can be determined from the accounts maintained by the assessee, on the portion so determined;
(ii) where the portion of the income so attributable cannot be determined under clause (i), on such portion as may be determined by the Agricultural Income Tax Officer in the prescribed manner.
Omitted
Where any person sustains a loss as a result of computation of agricultural income any year, the loss shall be carried forward to the following year and set off against the agricultural income of that year and if it cannot be wholly set off, the amount of loss not so set off, shall be carried forward to the following year and so on, but no loss shall be carried forward for more than eight years.
(1) Notwithstanding, anything contained in this Act, any person who holds landed property within the State extending to not more than five hundred hectares and deriving agricultural income may apply to the Agricultural Income Tax Officer for permission to compound the agricultural income tax payable by him and to pay in lieu thereof a lump sum at the rates specified in the Table herein under on the planted area: -
Name of Crops First five Hectares On the next three Hectares Rate per Hectare On the next 5 Hectares (above 8 Hectares not exceeding 13 Hectares) Rate per Hectare On the next 5 Hectares (above 13 Hectares not exceeding 18 Hectares) Rate per Hectare On the remaining extent (Upto 500 Hectares Rate per Hectare
(1) (2) (3) (4) (5) (6)
Cardamom 'C' Zone, Cashew, Clove, Cinchona, Nutmeg, Cinnamon and all other crops not specifically included in this Table (other than Tea & Coffee) Nil 300 450 800 1
Subject to such rules as may be made in this behalf, if for any reason, any extent of land in respect of which composition is permissible under Section 13, has escaped composition or the composition has been if permitted at too low a rate or for a lesser extent, the provision of Section 41 shall apply as if it were an escape of agricultural income under the Act:
Provided that the tax payable on such escapement shall be the rate which would have been charged if the extent of land had not been compounded or compounded at too low a rate or for a lesser extent when the maximum limit of extent provided in sub-section (1) of Section 13 is not exceeded.
(1) Any person who is a member of an association of persons or body, of individuals is not liable to pay tax on the share of agricultural income which he received as a member of such association of persons or body of individuals on which tax was levied and paid by such association of persons or body of individuals.
(2) If any person is a member of more than one association persons or body of individuals having landed property or is deriving agricultural income, all such income received by any such person shall be included in his total agricultural income and the tax payable on such total agricultural income shall be calculated in accordance with the provisions of this Act after deducting the share of tax payable by him, as member, out of the tax levied on the agricultural income of such associations of persons or body of individuals and the balance tax, alone, if any, shall be levied from such person.
(1) Subject to the provisions of this Act the total agricultural income of any charitable trust does not include,
(a) any agricultural income derived from property held under trust wholly for charitable or religious purposes, to the extent to which such income is applied to such purposes in the State; and, where any such income is accumulated or set apart for application to such purposes in the State, to the extent to which the income so accumulated or set apart is not in excess of twenty-five per cent of the agricultural income from such property;
(b) any agricultural Income derived from property held under trust in part only for such purposes, to the extent to which such income is applied to such purposes in the State; and, where any such income is finally set apart for application to such purpose in the State, to the extent to which the income so set apart is not in excess of twenty-five percent of the agricultural incom
The Government may, by notification in the Gazette, make an exemption, reduction in rate, or other modification in respect of agricultural income tax, in favour of any class of agricultural income or in regard to the whole or any part of the agricultural income of any class of persons or any, institution created for research or for advanced learning in agriculture.
Notwithstanding anything contained in this Act, the Government may, in cases where they are satisfied that owners or cultivators of land have consolidated their holdings for the purposes of beneficial enjoyment or for development of agriculture, allow such reduction in the rate of agricultural income tax payable, as may be prescribed in that behalf.
All agricultural income arising to any person by virtue of a transfer, whether revocable or not, and whether effected before or after the commencement of this Act, shall where there is no transfer of the assets from which the agricultural income is derived be chargeable to tax, as the agricultural income of the transferor and shall be included in his total agricultural income.
All agricultural income arising to any person by virtue of a revocable transfer of assets shall be chargeable to tax as the income of the transferor and shall be included in his total agricultural income.
The provisions of section 19 shall not apply to any agricultural income arising to any person by virtue of a transfer by means of a trust which is not revocable during the lifetime of the beneficiary, and, in the case of any other transfer, which is not revocable during the lifetime of the transferee, provided that the transferor derives no direct or indirect benefit of such agricultural income in either case.
For the purposes of sections 18, 19, and 20 and of this section, -
(a) a transfer shall be deemed to be revocable if,-
(i) it contains any provision for the retransfer directly or indirectly of the whole or any part of the agricultural income or assets to the transferor; or
(ii) it, in any, way, gives the transferor a right to reassume power directly or indirectly over the whole or any part of the agricultural income or assets.
(b) "transfer" includes any settlement, trust, covenant, agreement or arrangement.
In computing the total agricultural income of any individual there shall be included all such agricultural income, as arises directly or indirectly; -
(i) to the spouse of such Individual from the member-ship of the spouse in a firm carrying on agricultural operations in which such individual is a partner;
(ii) to a minor child of such individual from the admission of the minor to the benefits of partnership in a firm in which such individual is a partner;
(iii) to the spouse of such individual from assets transferred directly or indirectly to the spouse by such individual otherwise than for adequate consideration or in connection with an agreement to live apart;
(iv) to a minor child, not being a married daughter of such individual from assets transferred directly or indirectly to the minor child by such individual otherwise than for adequate consideration; and
Where by reason of the provisions contained in this chapter, the agricultural income from any asset or from membership in a firm of a person other than the assessee is included in the total agricultural income of the assessee, the person or the firm shall, not withstanding anything to the contrary contained in any other law for the time being in force, be liable, on the service of notice of demand by the Agricultural income Tax Officer In this behalf, to pay that portion of the tax levied on the assessee which is attributable to the agricultural income so included, and the provisions of Chapter IX shall, so far as may be, apply accordingly:
Provided that were any such asset is held jointly by more than one person, they shall be jointly and severally liable to pay the tax which is attributable to the agricultural income from the assets so included.
(1) There shall be the following classes of Agricultural Income tax Authorities for the purposes of this Act, namely: -
(a) The Board of Revenue,
(b) The Commissioner of Agricultural Income tax,
(c) Deputy Commissioners of Agricultural Income tax,
(d) Deputy Commissioner (Appeals) of Agricultural Income tax,
(e) Inspecting Assistant Commissioners of Agricultural Income tax,
(f) Agricultural Income tax Officers, and
(g) Agricultural Income tax Inspectors.
(2) Authorities specified in sub-section (1) shall be appointed by the Government or by any authority authorised by the Government in this behalf and such authorities shall exercise and perform throughout the State or in such areas, such powers and functions as the Government may, by notification in the Gazette, specify.
(
(1) The Board of Revenue or the Commissioner may from time to time, issue such orders, instructions and directions to the other Agriculture Income tax Authorities, as it he may deem fit, for the administration of the Act, and such authorities and all other persons employed in the execution of the Act shall observe and follow such orders, instructions and directions of the Board of Revenue, or the Commissioner as the case may be:
Provided that no such orders, instructions or directions shall, be issued so as to interfere with the discretion of the Deputy Commissioner (Appeals) or the Deputy Commissioner in the exercise of their appellate functions.
(2) Subject to the provisions contained in sub-section (1) every Agricultural Income tax Authority employed in the execution of this Act shall observe and follow such instruction as may be issued to him for his guidance by the Board of Revenue or by any superior officer within who
(1) Subject to the provisions in sub-section (2) and to any orders passed under sub-section (3), the agricultural income of a person shall be assessed by the Agricultural Income tax Officer of the area in which is situated the greater part of the land from which the agricultural income is derived.
(2) Where an assessee has made a return under sub-section (1) of section 35 to the Agricultural Income tax Officer having jurisdiction over the assessee's place of residence or the place where any of his land is situated or where his accounts are maintained, he shall be deemed to have elected such place as his place of assessment and it shall be accepted by the officer concerned unless such officer passes an order that the assessment shall be made in any other place for reasons to be recorded in writing.
(3) (a) An assessee who has not made a return under section 35, may, before the expiry of the time allowed for the submission of
(1) The Agricultural Income tax Officer, the Deputy Commissioner (Appeals), the Inspecting Assistant Commissioner, the Deputy Commissioner, the Commissioner and the Appellate Tribunal shall, for the purposes of this Act, have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 (Central Act V of 1908) when trying the suit in respect of the following matters, namely:-
(a) discovery and inspection,
(b) enforcing the attendance of any person including any officer of a banking company and examining him on oath,
(c) compelling the production of books of accounts and other documents,
(d) issuing commission.
(2) Subject to any rules made in this behalf, any authority referred to in sub-section (1) may impound and retain in its custody for such period, as it thinks fit, any books of accounts or other documents produced before it in any pro
(1) Any officer not below the rank of an Agricultural Income tax Officer may, for the purposes of this Act, by notice, require any assessee other than a person to whom the method of assessment under section 13 applies or any other person, who, in the opinion of such officer, is liable to pay tax under this Act-
(a) to produce or cause to be produced before him any accounts registers, records or other documents; or
(b) to furnish or cause to be furnish any other information, which such officer considers to be relevant for the purpose of any proceedings such requisition.
(2) Any Agricultural Income tax Inspector duly authorised by his superior officer in this behalf or any officer not below the rank of an Agricultural Income tax Officer may at any reasonable time, -
(a) enter any building or any land or any vessel or vehicle used by any assessee or any other person who, in the opini
The Agricultural Income tax Officer, the inspecting Assistant Commissioner or the Deputy Commissioner (Appeals) may for the purpose of this Act, -
(i) require any firm to furnish him with a return of the names and addresses of the partners of the firm and their respective shares;
(ii) require any person whom he has reason to be live to be a trustee, guardian or agent, to furnish him with a return of the names of the persons for or of whom he is a trustee, guardian or agent and of their addresses;
(iii) require any person, including a banking company or any officer thereof, to furnish information in relation to such points or matters, or to furnish statement of accounts and affairs verified in the manner specified by the Agricultural Income tax Officer, the Inspecting Assistant Commissioner or the Deputy Commissioner (Appeals), giving information in relation to such points or matters as, in the opinion
(1) Notwithstanding anything contained in any other provision of this Act, an Agricultural Income tax Inspector, Agricultural Income tax Officer or Inspecting Assistant Commissioner may enter any land in which cultivation is carried on, or any place where agricultural produce is processed or stored and require the owner or the person in possession of the land or the persons in charge of the place where agricultural produce is processed or stored, to afford him necessary facility to inspect the land or such place with a view to ascertaining-
(i) the extent of the land under cultivation;
(ii) the probable yield from the cultivation;
(iii) the probable expenses that may be incurred for the purpose of cultivation;
(iv) the quantity of agricultural produce processed or stored in such place; and
(v) any other details relevant in computing the agricultural income of
Any proceeding under this Act before an Agricultural Income tax Authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code, 1860 (Central Act XLV of 1860).
(1) (a) The Board of Revenue, or any other Agricultural Income tax Authority specified by it by a general or special order in this behalf may furnish or cause to be furnished to,-
(i) any officer, authority or body, performing any functions under any law relating to the imposition of any tax, or
(ii) such officer, authority or body performing functions under any other law as the Government may, if in its opinion, it is necessary so to do, in the public interest specify by notification in the Gazette in this behalf, any such information relating to any assessee in respect of any assessment made under this Act as may in the opinion of the Board of Revenue or other Agricultural Income tax Authority specified by it in this behalf, be necessary for the purpose of enabling the officer, authority or body to perform his or its functions under that law.
(b) Where a person makes an application to the Commissione
Every person liable to pay tax under this Act other than a person to whom the method of assessment under section 13 applies, shall keep and maintain such books of accounts and other documents as may be prescribed, as may enable the Agricultural Income tax Officer to compute his total agricultural income in accordance with the provisions of this Act.
(1) Every person who holds landed properties extending to more than sixty hectares during the previous year, shall get his accounts of such previous year or years audited by an accountant and obtain the report of such audit in the prescribed forms duly signed and verified by such accountant and setting forth such particulars as may be prescribed:
Provided that in a case where such person is required by or under any other law to get his accounts audited, it shall be sufficient compliance with the provisions of this section if such person gets the accounts audited in such manner and obtains the report of the audit and a further report in the form prescribed in accordance with this section.
Explanation: - For the purpose of this section "accountant" shall have the same meaning as in the explanation to sub-section (2) of section 288 of the Income tax Act, 1961.
(2) The audited statement of accounts and the
(1) Every person, other than a Company or a person who has to get his accounts audited in accordance with section 34 who is liable to pay tax under this Act and every person to whom a permanent account number is allotted under section 36, till his permanent account number is withdrawn, shall, furnish to the Agricultural Income tax Officer so as to reach him before the 1st July, in the case of a person who has to get his accounts audited in accordance with section 34 on or before 31st October and in the case of a company on or before 31st December of the assessment year, a return in the prescribed form and verified in the prescribed manner, setting forth his total agricultural income or the total agricultural income of any other person or total extent of the landed properties in his name or in the name of such other persons, in respect of which he is assessable to tax under this Act during the previous year.
(2) In the case of any person who, in
(1) Every person if his total agricultural income or the total agricultural income of any other person in respect of which he is assessable under this Act during any previous year exceeded the amount which is not chargeable to tax under this Act and every person liable to pay tax in accordance with the provisions of section 13 if he has not been allowed a permanent account number shall, within such time and in such manner, as may be prescribed, apply to the Agricultural Income Tax Officer for the allotment of a permanent account number and he shall allot an account number to the applicant within such time as may be prescribed.
(2) The Agricultural Income Tax Officer may also allot to any other person by whom tax is payable, a permanent account number.
(3) Where a permanent account number has been allotted to any person under this Act, he shall-
(a) quote such number in all his returns to or corresponde
(1) Every person liable to furnish a return under section 35 or section 41 other than an assessee coming under S.13, shall pay tax for previous year on or before the end of February of the previous year or within three months from the commencement of this Act whichever is later, on the estimated total agricultural income which shall not be less than eighty per cent of the total agricultural income as per return.
(2) Every person liable to pay tax under section 13 shall pay the tax for the previous year calculated on the extent of landed properties held in accordance with section 13, before the end of February of the previous year.
(3) Every person liable to furnish a return under section 35 or section 41, before furnishing the return, shall pay the tax due on the total agricultural income derived during the previous year, after deducting the advance tax already paid by him in accordance with sub-section (1) or sub-section (
(1) Notwithstanding anything contained in this act or any judgement, decree or order of any Court or Tribunal, an assessee other than a company not being a small scale industrial unit who is in appear to pay tax due under this act for the period ending on the 31st day of March, 1997 shall be entitled to a reduction of sixty per cent of the amount of interest accrued on such tax under sub-section (4) of section 37;
Provided that the entire arrears of tax with the reduction interest under the sub-section (2) shall be paid on or before 31st day of January 2000:
Provided further that the maximum interest payable after allowing the reduction shall be limited to one hundred per cent of the amount of tax outstanding on the 1st day of April 1999.
Provided also that where an assessee has paid the principle amount of tax or other amount due under this act prior to the 1st day of April, 1999 in pursuance of any o
(1) Notwithstanding anything contained in this Act or rules made thereunder or in any judgment, decree or order of any court, tribunal or appellate authority, any assessee who is in arrears of tax or any other amount due under this Act relating to the period up to and including 31st March, 2017, may opt for settling the arrears on payment of the principal amount of the tax in arrears by availing a complete reduction of the penalty amount, interest on the tax amount and on the penalty amount:
Provided that in case where the evidence, details and records pertaining to the penalty levied is not utilized or not liable to be utilized for any best judgment assessment under this Act, the demand relating to such penalty shall be settled under this section on payment of applicable tax relating to the penalty as determined by the assessing authority.
(2) Notwithstanding anything contained in the Kerala Revenue Recovery Act, 1968, (15
(1) For the purpose of making an assessment under this Act the Agricultural Income Tax Officer may serve on any person who has furnished a return under Section 35 or to whom a notice has been issued under sub-section(2) of Section 35 (whether a return has been furnished or not) a notice requiring him on a date to be specified therein,-
(i) to produce, or cause to be produced, such accounts or documents as the Agricultural Income Tax Officer may require, or
(ii) to furnish in writing information on such points or matters as the Agricultural income Tax Officer may require.
(2) For the purpose of obtaining full information in respect of the agricultural income of any person, the Agricultural Income Tax Officer may make such enquiry as he considers necessary.
(3) The Agricultural Income Tax Officer may make such enquiry as he considers necessary or may inspect or cause to be inspected
(1) If the Agricultural Income tax Officer is satisfied that a return furnished under section 35 by an assessee is correct and complete, he shall by order in writing, make an assessment and determine the sum payable by the assessee on the basis of such return.
(2) If the Agricultural Income tax Officer considers it necessary or expedient to verify the correctness and completeness of the return by requiring the presence of the assessee or the production of evidence in this behalf, he shall serve on the assessee a notice requiring him, on a date to be specified therein, either to attend the office of the Agricultural Income tax Officer or to produce or to cause to be produced, any evidence the assessee may rely in support of the return.
(3) On the day specified in the notice issued under sub-section (2) or as soon as may be, the Agricultural Income tax Officer, after considering the evidence as the assessee may produce and su
(1) Agricultural Income chargeable to tax shall be computed in accordance with the method of accounting regularly employed by the assessee:
Provided that in any case where the accounts are correct and complete to the satisfaction of the Agricultural Income tax f Officer. but the method employed is such that, in the opinion of the Agricultural Income tax Officer the income cannot properly be deduced therefrom, then the computation shall be made upon such basis and in such manner as the Agricultural Income tax Officer may determine.
(2) Where the Agricultural Income tax Officer is not satisfied about the correctness or the completeness of the accounts of the assessee, or where no method of accounting has been regularly employed by the assessee, Agricultural income tax Officer may make an assessment in the manner provided in sub-section (3) or sub-section (4) of section 39.
(1) If for any reason agricultural income chargeable to tax under this Act has escaped assessment in any financial year or has been assessed at too Iowa rate, the Agricultural Income tax Officer may at any time within ten years of the end of that year and subject to the provision of sub-section (2), serve on the person liable to pay the tax. a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 35 and may proceed to assess or reassess such income and the provisions of this Act, shall, so far as may be apply accordingly as if the notice were a notice issued under that sub-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:
Provided further that the Agricultural Income tax Officer shall not issue notice under this sub-section unless he had
(1) An assessing authority or an appellate or revisional authority (including the Appellate Tribunal) may of its own motion or on application by the assessee at any time within four years from the date of any order passed by it, rectify any mistake apparent from the record:
Provided that no such rectification shall be made having the effect of enhancing an assessment or reducing a refund unless such authority has given notice to the assessee of its intention so to do and has allowed him a reasonable opportunity of being heard.
(2) In the event of the error in the order sought to be rectified under sub- section (1) being an arithmetical error, the authority who passed the order may rectify the error even though the order sought to be rectified has been made the subject matter of an appeal or revision.
(1) Notwithstanding anything contained in this Act, where an assessee claims that any question of law arising in his case for an assessment year which is pending before the Agricultural Income tax Officer, or any appellate authority (such case being hereafter in this section referred to as the relevant case) is identical with a question of law arising in his case for another assessment year which is pending before the High Court in revision or in appeal (such case being hereafter in this section referred to as the other case), he may furnish to the Agricultural Income tax Officer or the appellate authority, as the case may be, a declaration in the prescribed form and verified in the prescribed manner, that if the Agricultural Income tax Officer or the appellate authority, as the case may be, agrees to apply to the relevant case the final decision on the question of law in the other case, he shall not raise such question of law in the relevant case in appeal before an
(1) Where in respect of any completed assessment of a partner in a firm it is found,
(a) on the assessment or re-assessment of the firm, or
(b) on any reduction or enhancement made in the agricultural income of the firm in terms of any proceedings under this Act, that the share of the partner in the agricultural income of firm has not been included in the assessment of the partner or if included is not correct, the Agricultural Income tax Officer may amend the order of assessment of the partner with a view to the inclusion of the share in the assessment or the correction thereof, as the case may be, and the provisions of Section 42 shall, so far as may be, apply thereto, the period of four years specified in that section being reckoned from the date of the final order passed in the case of the firm.
(2) Where in respect of any completed assessment of a member of an association of persons or of a body o
(1) When any tax, penalty, or any other sum is payable in consequence of any order passed under this Act or in pursuance of a return filed, the Agricultural Income tax Officer shall serve upon the assessee a notice of demand in the prescribed firm specifying the sum so payable together with a copy of such order.
(2) Where a notice of demand specified in sub-section (1) is served, the amount due therein shall, together with the interest accrued under sub-section (4) of section 37, subject to the claims of Government in respect of basic tax payable under the provisions of the Kerala Land Tax Act, 1961 (Act 13 of 1961), be a first charge on the properties of the assessee liable to pay such amount and where such amount or part thereof relates to the properties transferred by the assessee, also on such properties.
(1) Where any notice of demand under this Act is served upon an assessee and any appeal or other proceeding is filed or taken in respect of such demand then-
(a) where the demand is enhanced in such appeal or other proceedings, the Agricultural Income tax Officer shall serve upon the assessee another notice of demand also in respect of the amount by which such demand is enhanced; and any proceedings in relation to such demand, as are covered by the notice or notices of demand served upon him before the disposal of such appeal or proceeding may, without the service of any fresh notice of demand be continued from the stage at which such proceedings stood immediately before such disposal;
(b) where such demand is reduced in such appeal or other proceeding,-
(i) it shall not be necessary for the Agricultural Income tax Officer to serve upon the assessee a fresh notice of demand;
(ii)
(1) Where the Agricultural Income tax Officer is satisfied that any association of individuals or a company is under the control of one member or share holder thereof and that such association or company has been formed or is being used for the purpose, of evading or reducing the liability to tax of any member or share holder thereof, he may, with the previous approval of the Commissioner, pass an order stating that the sum payable as tax by the association or company shall not be determined and there upon the share of each member or share holder in the agricultural income of the association or company shall be included in his total agricultural income for the purpose of his assessment thereon.
Explanation: - A member of an association or company who owns the whole or the major portion of the capital of the association or company shall not by reason only of that fact, be deemed to control the association or company.
(2) The
(1) Where a person dies, his legal representative shall be liable to pay any sum which the deceased i would have been liable to pay under this Act if he had not died, in the like manner and to the same extent as the deceased.
(2) For the purpose of making an assessment (including an assessment, re-assessment or recomputation under chapter VII) , of the agricultural income of the deceased and for the purpose of levying any sum at the hands of the legal representative in accordance with the provisions of sub-section (1)
(a) any proceeding taken against the deceased before his death shall be deemed to have been taken against the legal representative and may be continued against the legal representative from the stage at which it stood on the date of death of the deceased;
(b) any proceeding which could have been taken against the deceased if he had survived, may be taken against the legal representative;
(1) For the purposes of this Act, representative assessee means, -
(i) in respect of the agricultural income of a non-resident, the agent of the non-resident, including a person who is treated as an agent under section 51;
(ii) in respect of the agricultural income of a minor lunatic or idiot, the guardian or manager who is entitled to receive or is in receipt of such income on behalf of such minor, lunatic or idiot;
(iii) in respect of agricultural income which the Court of Wards, the Administrator General, the Official Trustee or any receiver or manager (including any person, whatever his designation, who in fact manages the property on behalf of another) appointed by or under any order of a court, receives or is entitled to receive, on behalf or for the benefit of any person, such Court of Wards, Administrator General, Official Trustee, receiver or manager;
(iv) in respect of a
(1) Every representative assessee, as regards the agricultural income in respect which he is a representative assessee, shall be subject to the same duties, responsibilities and liabilities as if the agricultural income were income received by or accruing to or in favour of him and shall be liable to assessment in his own name in respect of that agricultural income, but any such assessment shall be deemed to be made upon him in his representative capacity only, and the tax shall be levied upon and recovered from him in like manner and to the same extent as it would be leviable upon and recoverable from the person represented by him.
(2) Where any person is, in respect of any agricultural income, assessable in the capacity of a representative assessee, he shall not, in respect of that agricultural income, be assessed under any other provision of this Act.
(1) For the purpose of this Act. 'Agent' in relation to a non-resident, includes any person in the State,-
(a) who is employed by or on behalf of the non-resident or
(b) who has any business connection with the non-resident; or
(c) from or through whom the non -resident is in receipt of any agricultural income whether directly or indirectly; or
(d) who is the trustee of the non-resident.
(2) No person shall be treated as the agent of a non- resident, unless he has been given an opportunity of being heard by the Agricultural Income Tax Officer as to his liability to be treated as such.
Nothing in the foregoing sections in this Chapter shall prevent either the direct assessment of the person on whose behalf, or for whose benefit, agricultural income referred to therein is receivable, or the recovery from such person of the tax payable in respect of such agricultural income.
The. Agricultural Income Tax officer shall have the same remedies against all property of any kind vested in or under the control or management of any representative assessee as he would have against the property of any person liable to pay any tax, whether the demand is raised against the representative assessee or against the beneficiary direct
Where a person carrying on any business in the course of which agricultural income is received, has been succeeded in such capacity by another person, such person and such other person, shall each be assessed in respect of his actual share of the agricultural income of the previous year: Provided that when the persons succeeded in the business cannot be found, the assessment of the agricultural income of the year in which the succession took place upto the date of succession, and for the years preceding that year shall be made on the person succeeding him, in like manner and to the same extent, as it would have been made on the person succeeded or when the tax in respect of the assessment made for such years assessed on the person succeeded cannot be recovered from him, it shall be payable by and recoverable from the person succeeding and such person shall be entitled to recover from the person succeeded the, amount of any tax so paid.
(1) When title to any property from which agricultural income is derived or liable pay tax under this Act is under dispute, whether any suit to decide the issue is pending in any court or not, the agricultural income from such property is assessable on the person who holds the property or who derives the income therefrom including any Administrator or official receiver.
(2) In computing the agricultural income for the purposes of subsection (1) the aggregate of agricultural income of either, party to the suit or who claim the title to the property whichever is higher, shall be included in it tax shall be calculated on this aggregate agricultural income and after deducting the tax already demanded from the person whose agricultural income was so included, the balance tax shall be assessed on the person who holds the property or derives agricultural income therefrom.
(3) Any person who holds any property in dispute and derive
(1) Where it appears to the Agricultural Income Tax Officer that any person intend to alienate his rights, title and interest in any land in the State and that such person may leave the State during the financial year or shortly after its expiry and that he has no present intention of returning, the Agricultural Income tax Officer may proceed to assess him on his agricultural income for the period from the expiry of the last previous year for which he has been assessed to the probable date of his departure from the State. For such completed previous year included in the period, an assessment shall be made on the total agricultural income of such person at the rate at which it would have been charged had such income been fully assessed, and for the period from the expiry of the last date of such previous year to the probable date of departure, the Agricultural Income Tax Officer shall estimate the total agricultural income of such person and accordingly make an assess
Every person liable to pay tax and every person to whom a permanent account number has been allotted under this act, shall intimate in writing to the assessing authority the details of any landed property acquired or disposal of by him, within two months of such acquisition or disposal, as the case may be.
(1) Where a person in receipt of agricultural income from any land in the State is found to have transferred his interest in such land to another person, the transferor and the transferee shall each be assessed in respect of his actual share, if any, of such agricultural income.
(2) When the transferor cannot be found, the assessment of such agricultural income of the previous year in which the transfer took place up to the date of the transfer and for the years preceding that year shall be made on the transferee in like manner and to the same amount, as it would have been made on the transfer or or when the tax in respect of the assessment made before or after the transfer for any or all of such year assessed on the transfer or cannot be recovered from him, it shall be payable by and recoverable from the transferee, and the transferee shall be entitled to recover from the transferor the amount of any tax so paid.
(3) An as
(1) Where Agricultural Income is received by a company, firm or Association of persons, and the business through which such income is received is discontinued in any year, an assessment may be made in that year on the basis of the agricultural income received during the period between the end of the previous year and the date of such discontinuance, in addition to the assessment, if any, made on the basis of the agricultural income received in the previous year.
(2) Any person discontinuing any such business shall give to the Agricultural Income tax Officer, notice of such discontinuance within thirty days thereof.
(3) where any such business is discontinued in any year any sum received after the discontinuance shall be deemed to be the agricultural income of the recipient and chargeable to tax accordingly in the year of receipt, as if such sum would have been included in the agricultural income of the person who carried on
(1) Where agricultural income is received by a firm or association of persons and the business of such firm or association of persons is discontinued or such firm or association of persons is dissolved the Agricultural Income Tax Officer shall make an assessment of the agricultural income of the firm or association of persons as if no such discontinuance or dissolution had taken place, and all the provisions of this Act, inc1uding the provisions relating to the levy of penalty or any other sum chargeable under any provision of this Act shall apply, so far as may be, to such assessment.
(2) Without prejudice to the generality of the foregoing pro- visions, if the Agricultural Income tax Officer in the course of any proceeding under this Act in respect of any such firm or association of persons referred to therein is satisfied that the firm or association of persons was guilty of any of the acts specified in Chapter XII he may impose a penalty in
(1) Every person-
(a) who is a liquidator of any company which is being wound up, whether under the orders of court or otherwise, or
(b) who has been appointed the receiver of any assets of company (hereinafter referred to as the liquidator) shall,
within thirty days after he has become such liquidator, give notice of his appointment as such, to the Agricultural Income tax Officer who is entitled to asses the agricultural income of the company.
(2) The Agricultural Income tax Officer shall, after making such enquiries or calling for such information as he may deem fit, notify to the liquidator within three months from the date on which he receives notice of the appointment of the liquidator, the amount which, in the opinion of the Agricultural Income tax Officer, would be sufficient to provide for any tax which is then, or is likely thereafter, to become payable by the company.
Where any tax due from a private company in respect of any income of any previous year during which such company was a private company cannot be recovered, then every person who was a director of the private company at any time during the relevant previous years shall be jointly and severally liable for the payment of such tax, unless, he proves that the non-recovery is not due to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.
(1) Any amount specified as payable under this Act other than interest accrued, shall be paid as specified in the notice of demand under section 45, which shall not be less than thirty days from the date of the order for such payment.
(2) If the amount is not paid within the time specified, the assessee shall be deemed to be in default: Provided that an assessee shall not be deemed to be in default if he has complied with any order or direction of the appellate or revisional authority regarding the payment of tax when an appeal or revision is pending before such authority.
(3) Where, during the pendency of any proceedings under this Act, any assessee creates a charge on or parts with the possession by way of sale, mortgage, exchange or any other mode Of transfer whatsoever, of any of his assets, in favour of any other person, with the intention of evading payment of tax or other sum such charge or transfer shall be void as
(1) When an assessee is in default in making payment of tax, he shall, in addition to the amount of the arrears and the amount of interest payable under subsection (4) of section 37 be liable, by way of penalty, to pay such amount as the Agricultural Income Tax Officer may direct, and in the case of a continuing default such further amount or amounts as the Agricultural Income Tax Officer, may, from time to time direct so however, that the total amount of penalty does not exceed the amount of tax in arrears:
Provided that before levying any such penalty 1he assessee shall be given a reasonable opportunity of being heard.
Explanation: - For the removal of doubt, it is hereby declared that an assessee shall not cease to be liable to any penalty under this subsection merely for the reasons that before the levy of such penalty, he has paid the tax or the Agricultural Income Tax Officer has initiated any proceedings for the reco
(1) The Agricultural Income Tax Officer may forward to the Collector a certificate under his signature, specifying the amount of arrears due from an assessee and the Collector, on receipt of such certificate, shall proceed to recover from such assessee the amount specified therein as if it were an arrear of land revenue:
Provided that without prejudice to any other powers of the Collector in this behalf, he shall, for the purpose of recovering the said amount, have the powers which under the Code of Civil Procedure (Central Act V of 1908), a Civil Court has, for the purpose of the recovery on an amount due under a decree.
(2) The Agricultural Income Tax Officer may issue a certificate under sub-section (1) notwithstanding that the proceedings, for recovery of the arrears by any other mode have been taken
(1) The Agricultural Income Tax Officer may, at any time or from time to time, by notice in writing 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 to the Agricultural Income tax Officer, either forthwith upon the money becoming due or being held or within the time specified in the notice (not being before the money becomes due or is held) so much of the .C money, as is sufficient to pay the amount due by the assessee in respect of arrears or the whole of the money, whel1 it is equal to or less than that amount.
(2) A notice under this section may be issued to any person who holds or subsequently hold any money for on account of the assessee, jointly with any other person and for the purposes of this section, the shares of the joint holders in such account shall be presumed to be equal until the contrary is proved.
Any penalty or interest due under the provisions of this Act shall be recoverable in the manner provided in this Chapter for the recovery of tax.
The several modes of recovery specified in this Chapter shall not affect in any way, -
(a) any other law for the time being in force relating to the recovery of debts due to the Government; or
(b) the right of the Government to institute a suit for the recovery of the arrears due from the assessee; and it shall be lawful for the Agricultural Income tax Officer or the Government, as the case may be, to have recourse to any law or suit, notwithstanding that the tax due is being recovered from the assessee by any mode specified in this Chapter.
Notwithstanding anything to the contrary contained in any law for the time being in force, any amount of tax, penalty, interest or any other amount if any, payable by an assessee or any other person under this Act, shall be the first charge on the property of the assessee, or such person.
(1) If any person satisfies the Agricultural Income tax Officer that the amount of tax paid by him for any, assessment year exceeds the amount with which he is properly chargeable under this Act for that year, he shall be entitled to a 1 refund of the excess amount so paid.
(2) Where, as a result of any order passed in appeal or other proceedings under this Act, refund of any amount becomes due to the assessee, the Agricultural Income tax Officer shall, except as otherwise provided in this Act refund the amount to the assessee without his having made any claim in that behalf.
(3) If any advance tax paid by any person in accordance with section 37 is found in excess of the amount properly chargeable under this Act for the year, he shall be entitled to a refund of the excess amount so paid.
(4) If any refund due under this section is not paid within, three months from the date of receipt of the order by
Section 68 of the Kerala Agricultural Income Tax Act, 1991, deals with the procedure for refunds of excess tax paid by a person, ensuring that taxpayers are not unduly burdened by overpayment. It provides mechanisms for claiming refunds and specifies the time limits and conditions for such claims, thereby safeguarding the interests of the taxpayer and maintaining the fiscal discipline of the tax administration.
Section 68 stipulates that if a person satisfies the Agricultural Income Tax Officer that the amount of tax paid exceeds the proper amount payable, they are entitled to a refund of the excess. It also prescribes that refunds due as a result of orders passed in appeal or other proceedings shall be refunded without the need for a separate claim. Furthermore, if a refund is not paid within three months from the date of the order, simple interest at 15% per annum is payable from the expiry of that period. The section also covers refunds arising from excess payments under assessments and orders of recovery.
Section 68 applies to:- Overpaid tax as a result of assessments, appeals, revisions, or orders of recovery.- Refunds arising from excess payments due to assessments or proceedings under the Act.- Refunds for excess amounts paid under the provisions of the Act, including assessments made in appeal or revision.It does not extend to cases where the overpayment is not supported by an order or where the claim is made after the expiry of the prescribed period.
Section 68 itself does not prescribe any punishment for non-compliance or fraudulent claims. However, recovery of refunds due can be enforced through the mechanisms provided under the Act, including attachment or sale of property. Any false claim or deliberate suppression of facts to obtain a refund may attract penalties under other provisions of the Act, such as Section 37(5) or general penal provisions related to tax evasion and fraud.
"Refund entitlement" - Section 68 grants a taxpayer the right to claim a refund if excess tax has been paid, ensuring equitable treatment [Home Page, http://192.168.1.6/dept/].
"Satisfaction of the Officer" - The refund claim must be supported by the Agricultural Income Tax Officer’s (AITO) satisfaction, emphasizing the role of administrative verification [Section 68, The Kerala Agricultural Income Tax Act, 1991].
"Order-based refunds" - Refunds are to be issued based on orders passed in appeals or proceedings, indicating the importance of formal adjudication [Section 68, The Kerala Agricultural Income Tax Act, 1991].
"Time limit for refunds" - The three-month period from the date of the order is critical; delay beyond this entitles the taxpayer to interest [Section 68, The Kerala Agricultural Income Tax Act, 1991].
"Interest on delayed refunds" - The statutory rate of 15% per annum on refunds not paid within three months acts as a deterrent against administrative delays and compensates the taxpayer for undue delay [Section 68(4), The Kerala Agricultural Income Tax Act, 1991].
"Automatic refunds in case of orders" - Refunds arising from appellate or other orders are to be processed without the need for a separate application, streamlining the process [Section 68(2), The Kerala Agricultural Income Tax Act, 1991].
"Scope limitation" - The section applies only to excess payments supported by orders; mere overpayment without formal proceedings does not qualify [Section 68, The Kerala Agricultural Income Tax Act, 1991].
"Recovery mechanisms" - The Act authorizes recovery of refunds through attachment or sale of property if the refund is not paid timely, integrating refund claims with enforcement procedures [Section 68, The Kerala Agricultural Income Tax Act, 1991].
"Penal consequences" - While Section 68 does not specify penalties, fraudulent or false claims may attract penalties under other provisions, such as Section 37(5) or penal laws [Section 37(5), The Kerala Agricultural Income Tax Act].
"Judicial interpretation" - Courts have consistently held that the refund provisions are designed to prevent unjust enrichment and to promote taxpayer confidence in the tax system [G. Lakshmanan vs State Of Kerala, 2012].
"Procedural safeguards" - The requirement of supporting evidence and order-based approval ensures procedural fairness and prevents arbitrary refunds [Section 68, The Kerala Agricultural Income Tax Act].
"Interest rate rationale" - The 15% rate aligns with prevailing market rates and aims to compensate taxpayers for administrative delays, as clarified in judicial pronouncements [Section 68(4), The Kerala Agricultural Income Tax Act].
"Interaction with other statutes" - Similar provisions exist in the Kerala General Sales Tax Act (Section 44) and other fiscal statutes, indicating a uniform approach to refunds across different taxes [Section 44, Kerala General Sales Tax Act].
"Legal safeguard" - The section acts as a safeguard against excess collection and ensures the integrity of the tax administration by allowing rectification and refund [Section 68, The Kerala Agricultural Income Tax Act].
"Limitations" - Claims made after the prescribed period or unsupported by orders are invalid, emphasizing the importance of timely and supported claims [Section 68, The Kerala Agricultural Income Tax Act].
"Enforcement" - The Act empowers authorities to enforce refunds through recovery proceedings, which include attachment and sale, ensuring compliance [Section 68, The Kerala Agricultural Income Tax Act].
"Taxpayer protection" - Overall, Section 68 provides a vital mechanism for taxpayer protection, promoting fairness and correcting over-collections [Judgment in G. Lakshmanan vs State Of Kerala, 2012].
This concise legal commentary and analysis of Section 68 highlight its significance in safeguarding taxpayers' rights, ensuring procedural fairness, and maintaining fiscal discipline within the framework of Kerala’s Agricultural Income Tax regime.
(1) Where agricultural income of one person is included under any provision of this Act in the agricultural income of any other person, such other person shall be entitled to a refund under this chapter in respect of such income.
(2) Where through death, incapacity, insolvency, liquidation or other cause, a person is unable to claim or receive any refund due to him, his legal representative or the trustee or guardian or receiver, as the case may be, shall be entitled to claim or receive such refunds for the benefit of such person or his estate.
Where an order giving rise to a refund is the subject matter of an appeal or further proceeding, or where any other proceeding under this Act, is pending and the Agricultural Income tax Officer is of opinion that the grant of the refund is likely to adversely affect the revenue, the Agricultural Income Tax Officer may, with the previous approval of such higher authority as may be prescribed withhold the refund till such time as such higher authority may determine.
Where under any of the provisions of this Act, a refund is found to be due to any person, the Agricultural Income tax Officer, the Appellate Assistant Commissioner, the Inspecting Assistant Commissioner, the Deputy Commissioner or the Commissioner, as the case may be may in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the tax, penalty or interest if any remaining payable under this Act by the person to whom the refund is due.
(1) Any assessee aggrieved by any order passed by the Agricultural Income tax Officer may appeal to the Deputy Commissioner (Appeals) against such order.
(2) Any assessee aggrieved by any order passed by the Inspecting Assistant Commissioner may appeal to the Deputy Commissioner against such order.
(2A) Notwithstanding anything contained in sub-section (1) or subsection (2) any assessee aggrieved by an order passed by the Agricultural Income Tax Officer or Inspecting Assistant Commissioner may file an appeal before the Appellate Tribunal where such order involves only a question of law which has been settled by a decision of the High Court or the Supreme Court.
(3) Every appeal under this section shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a fee of two hundred rupees.
(4) The appeal shall be presented within a period o
(1) The Government may appoint an Appellate Tribunal consisting of a Chairman and as many members as may be necessary to exercise the powers and discharge the functions conferred on the Appellate Tribunal by this Act.
(2) The Chairman shall be a person who is, or has been or is qualified to be appointed as a Judicial Officer not below the rank of a District Judge and the other members shall possess such qualifications as may be prescribed.
(3) Any vacancy in the office of a member of the Appellate , Tribunal shall be filled by the Government.
(4) (a) Subject to the provisions of sub-sections (5), (6), (7) and (8) the functions of the Appellate Tribunal may be performed:
(i) by a Bench consisting of the Chairman and any other member or members of the Tribunal constituted by the Chairman; or
(ii) by a Bench consisting of two or more members other than the Chair
(1) Any assessee aggrieved by any of the following orders may appeal to the Appellate Tribunal against such order.
(a) an order passed by the Deputy Commissioner (Appeals), under section 72;
(b) an order Imposing a penalty by an Inspecting Assistant Commissioner, or Deputy Commissioner.
(c) any order referred to in sub-section (2A) of section 72.
(2) Any Officer empowered by the Government in this behalf may if he objects to any order, passed under section 72, appeal to the Appellate Tribunal against such order,
(3) Every appeal under sub-section (1) and sub-section (2) shall be filed within a period of sixty days from the date on which the order sought to be appealed against is served to the, assessee or to the Inspecting Assistant Commissioner or Deputy Commissioner as the case may be.
(4) The Officer empowered by the Government under
(1) The Government may appoint for a period of one year, a settlement Commission consisting of a chairman and as many other member as they think fit, to perform the functions assigned to the Settlement Commission by or under this Act. The chairman shall be a person who is a Judicial Officer not below the rank of a District Judge and the other members shall possess such qualifications as may be prescribed.
(2) Any vacancy in the office of the members of the Settlement Commission shall be filled by the Government.
(3) The functions of the Settlement Commission may be performed,-
(i) by a bench consisting of the Chairman and any other member; or
(ii) by a bench consisting of the Chairman and two other members; or
(iii) by a bench consisting of two or more members other than the Chairman.
(4) Any member who has previously dealt with any case
(1) Notwithstanding anything contrary contained in this Act an assessee may at any stage of an appeal or revision pending before any authority under this Act or High Court, make an application in such form and in such manner as may be prescribed, containing a full and true disclosure of his total agriculture income or other amount which had not been disclosed before the Assessing Officer, including the additional amount of tax payable on such income and other particular, as may be prescribed to the settlement commission to have the case settled and any such application shall be disposed of in the manner hereinafter provided:
Provided that no such application shall be made unless, the assessee has furnished the details of his total agriculture income which he is or was required to furnish under any of the provisions of this Act:
Provided further that an application shall not be rejected under this sub-section unless an oppor
(1) The Deputy Commissioner may, of his own motion, call for and examine the records relating to any ord9r passed or proceeding recorded under this Act, by any Officer or authority subordinate to him, other than a Deputy Commissioner (Appeals)which in his opinion is prejudicial to revenue and may make such enquiry or cause such enquiry to be made and, subject to the provisions of this Act, may pass such order thereon as he thinks fit.
(2) The Deputy Commissioner shall not pass any order under subsection (1) if-
(a) the order has been made the subject of an appeal to the Deputy Commissioner (Appeals)or the Appellate Tribunal or of a revision in the High Court; or
(b) more than four years have expired after the passing of the order referred to therein:
Provided that in computing the period of limitation for the purpose of sub-section (2), any period during which any proceeding under
(1) The Commissioner may of his own motion, call for and examine the records relating to any order passed or proceeding recorded under this Act which in his opinion is prejudicial to revenue, by any officer or authority subordinate to him including a Deputy Commissioner (Appeals), and make such enquiry or cause such enquiry to be made and, subject to the provisions of this Act, may pass such orders thereon as he thinks fit.
(2) The Commissioner shall not pass any order under sub-section (1) if-
(a) the time for filing appeal against that order has not expired;
(b) the order has been made the subject of an appeal to the Deputy Commissioner (Appeals) or the Appellate Tribunal or of a revision in the High Court; or
(c) more than four years have elapsed after the passing of the order referred to therein:
Provided that in computing the period of limitation for the
(1) Any person objecting to an order passed by the Deputy Commissioner under Section 16 or Section 75 may, within a period of thirty days from the date on which a copy of the order was communicated to him, in the manner prescribed file an application for revision of such order to the Commissioner:
Provided that the Commissioner may admit an application filed after the expiry of the said period, if he is satisfied that the applicant had sufficient cause for not filing the application within the said period.
(2) The application under sub-section (1) shall be in the prescribed form and verified in the prescribed manner and shall be accompanied by a fee of five hundred rupees.
(3) On admitting an application for revision, the Commissioner may call for and examine the records of the order against which the application has been filed and may make such enquiry or cause such enquiry to be made and subject to t
(1) (a) Any officer empowered by the Government in this behalf or any other person who objects to an order passed by the Appellate Tribunal under sub-section (7) or sub-section (10) of section 74 or under section 79,may within ninety days from the date on which a copy of such order is served on him in the manner prescribed prefer a petition to the High Court on the ground that the Appellate Tribunal has either decided erroneously or failed to decide any question of law.
(b) Any person who objects to an order passed by the Commissioner under sections 76, 77 or 79 may, within ninety days from the date on which a copy of such order is communicated to him prefer a petition to the High Court on the ground that the Commissioner has either erroneously decided or failed to decide any question of law:
Provided that the High Court may admit a petition preferred after the period of ninety days referred to in clauses (a) and (b) if it
Every interlocutory applications prescribed by the Government and filed before the authorities under this Act, specified below, other than those filed by officers empowered by Government, shall be accompanied by following fees, namely: -
(a) Before the Deputy Commissioner (Appeals) One hundred rupees
(b) Before the Deputy Commissioner One hundred rupees
(c) Before the Commissioner or Appellate Tribunal Two hundred and fifty rupees
(1) If the Agricultural Income tax Officer, the Inspecting Assistant Commissioner, the Deputy Commissioner (Appeals), the Deputy Commissioner, the Commissioner or the Appellate Tribunal, in the course of any proceedings: under this Act, is satisfied that any person-
(a) has without reasonable cause failed to furnish the return which he was required to furnish under sub-section (1) of section 35 or by notice given under sub-section (2) of section 35 or subsection (1) of section 41, within the time allowed for it under the above sections or under the proviso to sub-section (2) of section 35 and in the manner provided under section 35 or under any rules made thereunder; or
(b) has without reasonable cause, failed to comply with a notice under sub-section (1) of section 38 or sub-section (2) of section 39, or a summons to appear in person or to produce any accounts or documents or a notice to produce any accounts or documents u
(1) Whoever causes any; obstruction to the exercise of any of the powers conferred under subsections (2), (3 or (8) of section 28 shall be punishable with simple imprisonment which may extent to six months or with fine.
(2) Whoever wilfully contravenes any provision of this Act for which no express provision for penalty is provided, shall on conviction, be punishable with fine not exceeding rupees two thousand.
If a person fails without reasonable cause or excuse:-
(a) to furnish in due time any of the returns specified in subsection (1) or sub-section (2) of section 35 or sub-section (1) of section 41
(b) to grant inspection or allow copies to be taken in accordance with the provisions of sections 27, 28 or 30; or
(c) to produce or cause to be produced on or before the date specified in any notice served on him under sub-section (4) of section 35 such accounts and documents as are referred to in the notice; shall be punishable with fine with a sum not exceeding fifty rupees for every day during which the default continues if it is a continuing offence and in other cases a fine not exceeding rupees two thousand.
If a person makes a statement in any verification under this Act or under any rule made there under, or delivers any account of statement which is false and which he either knows or believes to be false or does not believe to be true, he shall be punishable with imprisonment for a term which may extent to six months or with fine.
(1) A person shall not be proceeded against for an offence under Section 80 or section 81 or section 82 except at the instance of the Inspecting Assistant Commissioner.
(2) Before instituting proceedings against any person under subsection (1), the Inspecting Assistant Commissioner shall call upon such person to show cause why proceedings should not be instituted against him.
(3) The Inspecting Assistant Commissioner, may, either before or after the institution of proceedings, compound any offence.
(1) If a public servant furnishes any information or produces any document in contravention of the provisions of sub-section (2) of section 32 he shall be punishable with imprisonment which may extend to six months or with fine.
(2) No prosecution shall be instituted under this section except with the previous sanction of the Government.
No offence under this Chapter shall be tried by a Magistrate below the rank of a Magistrate of the First Class.
The Agricultural Income Tax Officer, or the Inspecting Assistant Commissioner or any other officer or authority authorised by the Government in this behalf may accept from any person who has committed or is reasonably suspected of having committed an offence against this Act by way of composition of such offence-
(a) where the offence consist of evasion of any tax payable under this Act, in addition to the tax so payable, a sum of money equal to the tax so payable subject to a minimum of rupees One hundred and maximum of rupees one lakh; and
(b) in other cases a sum of money not exceeding rupees five thousand:
Provided that the Commissioner may by order authorise any officer to compound the offence under this section on payment of a reduced amount.
(1) Any notice required to be served on, or given to any person under this Act or the rules made thereunder, shall be deemed to be duly served or given, if it is served in anyone of the following ways:-
(a) if the notice is addressed to that person and is given or tendered to him; or
(b) where that person cannot be found, if it is affixed on some conspicuous part of his last known place of residence or business or is tendered to any audit member of his family; or
(c) if it is sent by registered post to that person at his last known place of residence or business.
(2) Any such notice or requisition may be addressed: -
(a) in the case of a firm to any partner of the firm;
(b) in the case of a local authority or a company, to the principal officer thereof;
(c) in the case of any other association or body of individuals
Where a firm or other association of persons, is dissolved or discontinued, notices under this Act in respect of the agricultural income of the firm or association of persons may be served on any person who was a partner (not being a minor), or member of the association as the case may be, immediately before its dissolution or discontinuance.
Where an assessment is to be made under the provisions of Chapter VIII, the Agricultural Income Tax Officer may serve on the person whose agricultural income is to be assessed or in the case of a firm, an association of persons, or any person who was a partner of such firm, member of association, at the time of its discontinuance, or in the case of a company, on the principal officer thereof, a notice containing all or any of the requirements which may be included in a notice under subsection (2) of section 35 and the provisions of this Act, shall so far as may be apply accordingly, as if the notice were a notice issued under that section.
(1) Any assessee who is entitled or required to attend before any agricultural income tax authority or the Appellate Tribunal in connection with any proceeding under this Act, otherwise than when required under section 27 to attend personally for examination on oath or affirmation, may attend either in person or by any person duly authorised by him in writing in this behalf, being a relative or a person regularly employed by the assessee or a legal practitioner or any accountant or an Income Tax Practitioner or Sales Tax Practitioner and not being disqualified on the ground of misconduct by or under any law or under any order, of any competent authority.
(2) In this section.
(i) a person regularly employed by the assessee shall include any officer of a Scheduled Bank with which the assessee maintains a current account or has other regular dealing;
(ii) "Accountant' means a Chartered Accountant within t
(1) The amount of total agricultural income computed in accordance with the fore- going provisions of this Act, shall be rounded off to the nearest ten rupee and, for this purpose and wherever, a rounding of the nearest ten rupees is authorised then, if such part is five rupees or more, it shall be rounded off to the nearest ten or multiples of ten rupees and if such part is less than five rupees, it shall be ignored.
(2) The amount of tax, penalty, fine, interest or any other sum payable and the amount of refund due under the provisions of the Act shall be rounded off to the nearest rupee and for this purpose where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more it shall be rounded off to one rupee and if such part is less than fifty paise, it shall be ignored.
(1) Where any tax or any other amount due or demanded under the Act is paid by an assessee or other person, the payment so made shall be appropriated first towards interest accrued on such tax or other amount under sub section (4) of Section 37 on such date of payment and the balance available shall be appropriated towards principal outstanding, notwithstanding any request to the contrary by the assessee or any person making such payment.
(2) Notwithstanding anything contained in sub-section (1) where any assessee or other person has paid any amount towards tax or any other amount prior to coming into force of this section, no recomputation of such payments shall be made under sub-section(1).
A receipt shall be given for any money paid or recovered under this Act.
Every person deducting, retaining or paying any tax in pursuance of this Act in respect of agricultural income belonging to another person is hereby indemnified for the deduction retention or payment thereof.
(1) No suit shall be brought, in any Civil Court to set aside or modify any assessment order made under this Act and no prosecution, suit or other proceeding shall lie against the Government or any officer of the Government for anything in good faith done or intended to be done under this Act.
(2) No Civil Court shall grant any injunction or direction or otherwise interfere with any proceedings for assessment to tax under this Act.
(1) The Board of Revenue or the Commissioner, may either suo motu or on application for reasons to be recorded in writing in such manner as may be prescribed, transfer any case of assessment pending before any Agricultural Income Tax Officer or Inspecting Assistant Commissioner, to any other Agricultural Income Tax Officer or Inspecting Assistant Commissioner. The order of transfer shall be communicated to the assessee, to every other person affected by the order and to the Agricultural Income Tax Officers or Inspecting Assistant Commissioners concerned.
(2) The Deputy Commissioner may either suo motu or on application, for reasons to be recorded in writing in the manner prescribed, transfer any case of assessment within his jurisdiction ending before any Agricultural Income Tax Officer, or Inspecting , Assistant Commissioner, to any other Agricultural Income Tax Officer or Inspecting Assistant Commissioner. The order of transfer shall be commun
The Board of Revenue or the Commissioner may, either suo motu or on application, for reasons to be recorded in writing, transfer an appeal pending before the Deputy Commissioner (Appeals) to another Deputy Commissioner (Appeals). The order of transfer shall be communicated to the appellant, to every other person affected by the order to the Agricultural Income Tax Officer or Inspecting Assistant Commissioner, against whose order the appeal was preferred and Deputy Commissioner (Appeals) or Deputy Commissioners concerned.
The authority to whom assessment, or appeal is transferred under section 95, or section 96 as the case may be shall proceed to dispose of it irrespective of the local limits of jurisdiction.
(1) The Government may, by notification in the Gazette, make rules prospectively or retrospectively for carrying out the purpose of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters: -
(a) the ascertainment and determination of any class of agricultural income;
(b) the deductions and exemptions to be made in the computation of agricultural income;
(c) the special deductions and allowances including replantation allowance; and infilling expeo1ses in respect of plantations. and other perennial crops, where expenditure has to be incurred for a number of years before Income is derived therefrom;
(d) the percentage on the written down value which may be allowed as depreciation in respect of buildings, machinery, plant or furniture including deduction towards i
(1) The Agricultural Income Tax Act, 1950 (Act XXII of 1950) is hereby repealed:
Provided that such repeal shall not affect the previous operation of the said Act or any right, title, obligation or liability already acquired, accrued or incurred thereunder, and subject, thereto, anything done or any action taken, including any appointment, notification, notice, order, rule, form or regulation, certificate, licence or permit in the exercise of any power conferred by or under the said Act, shall be deemed to have been done or taken in the exercise of the powers conferred by or under this Act as if this Act were in force on the date on which such thing was done or action was taken and all arrears of tax and other amounts due at the commencement of this Act may be recovered, as if they had accrued under this Act and any reference in the said Act to an officer, authority, Tribunal or Court shall be construed as reference to the corresponding Officer,
(1) If any difficulty arises .in giving effect to the provisions of this Act, the Government may, by general or special order do anything not inconsistent with the provisions of this Act, which appears to it to be necessary or expedient for the purpose of removing the difficulty.
(2) Every order made under this section shall be laid as soon as may be after it is made before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and, if before the expiry of the session in which it is so laid or the session immediately following, the Legislative Assembly agrees that the order should be either modified or annulled, the order shall thereafter have effect only in such modified form or be of no effect as the case may be, so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under this Act
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