MADRAS PLANTATIONS AGRICULTURAL INCOME-TAX ACT, 1955

Act No. 05 of 1955

30th March, 1955

An Act to provide for the levy of a tax on agricultural income from plantations in the State of Madras. Whereas it is expedient to provide for the levy of a tax on agricultural income from plantations in the State of Madras; Be it enacted in the Sixth Year of the Republic of India as follows:1 1 For Statement of Objects and Reasons, sec Fort St. George Gazette, Extraordinary, dated the 28th July 1954, part IV-A, pages 261-262.

S.1 Short title and extent

• (1) This Act may be called the Madras Plantations Agricultural Income-tax Act, 1955.
• (2) It extends to the whole of the State of Madras.

S.2 Definitions

In this Act, unless the context otherwise requires --

• (a) "agricultural income" means--
  • (1) any rent or revenue derived from a plantation;
  • (2) any income derived from such plantation in the State 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);

    Explanation I.--Agricultural income derived from such plantation by the cultivation of tea means that portion of the income derived from the cultivation, manufacture and sale of tea as is defined to be agricultural income for the purpose
    

    S.3 Charge of Agricultural Income-tax

    • (1) Agricultural income-tax at the rate or rates specified in Part I of the Schedule to this Act shall be charged for each financial year commencing from the 1st April 1955 in accordance with and subject to the provisions of this Act, on the total agricultural income of the previous year of every person.
    • (2) "Where there is included in the total agricultural income of an assessee any income exempted from agricultural income-tax by or under the provisions of this Act, the agricultural income-tax payable by the assessee shall be an amount bearing to the total amount of the agricultural income-tax which would have been payable on the total agricultural income bad no part of it been exempted, the Charge of agricultural income-tax. same proportion as the unexempted portion of the total agricultural income bears to the total agricultural income.
    • (3) In the case of persons holding property as tenants-in-common and deriving agricultural income, the tax shall be asse
      

    S.4 Total agricultural income

    Subject to the provisions of this Act, the total agricultural income of any previous year of any person comprises all agricultural income derived from a plantation situated within the State and received by him within or without the State, but does not include--

    • (a) any agricultural income derived from a plantation situated without the State;
    • (b) any agricultural 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 thereto.

    Explanation---In this section, "charitable purpose" includes relief of the poor, education, medical relief and the advancement of any other object of general public utility.

    
    

    S.5 Computation of agricultural income

    The agricultural income of a person shall be computed after making the following deductions, namely: --

    • (a) Any sums paid in the previous year on account of land revenue duo to the Government, local rates and cesses and municipal taxes in respect of plantations;
    • (b) any rent paid in the previous year to the landlord or superior landlord, as the case may be, in respect of the plantation from which the agricultural in come is derived;
    • (c) any expenses incurred in the previous year on the maintenance of any protective work constructed for the benefit of the plantation from which the agricultural income is derived;

      Explanation.--"Maintenance" includes current repairs and includes also, in the case of protective dykes and embankments, all such work as may be necessary from year to year for repairing any damage or destruction caused by flood or other natural causes;

    • (d) any expenses incurred in the previous year on maintenance a
      

    S.6 Assessment of income derived from plantations partly within the State and partly without

    Where agricultural income is derived from plantations 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 plantations 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 by the method specified in clause (i), on such portion as may be determined in the prescribed manner.
    
    

    S.7 Method of accounting

    Agricultural income shall be computed for the purpose of sections 5 and 6 in accordance with the method of accounting regularly employed by the assessee:

    Provided that, if no method of accounting has been regularly employed by the assessee, or if the method employed is such that, in the opinion of the Agricultural Income-tax Officer, the agricultural income cannot properly be deduced therefrom, then the computation shall be made upon such basis and in such manner as may be prescribed.

    
    

    S.8 Liability of Court of Wards, Administrator-General, etc.

    • (1) (a) In the case of agricultural income taxable under this Act which the Court of Wards, Administrator-General or Official Trustee or any receiver, administrator, executor, trustee, guardian or manager appointed by or under any law or by an order of court or by written agreement is entitled to receive on behalf of any person, the tax shall be levied upon and recoverable from the Court of Wards, Administrator-General, Official Trustee or from such receiver, administrator, executor, trustee, guardian or manager, as the case may be, in like manner and to the same amount as it would be leviable upon and recoverable from the person on whose behalf such agricultural income is receivable, and all the provisions of this Act shall apply accordingly.,
    • (b) Where the agricultural income received on behalf of any person by the Court of Wards, Administrator-General, Official Trustee, receiver, administrator, executor, trustee, guardian or manager referred to in clause (a) is pa
      

    S.9 Income from settlement, disposition, etc.

    • (1) In computing the total agricultural income of an assessee, all agricultural income arising to any person by virtue of a settlement or disposition, whether revocable or not, and whether effected before or after the commencement of this Act, from assets remaining the property of the settlor or disponer shall be deemed to be the agricultural income of the settlor or disponer, and all agricultural income arising to any person by virtue of a revocable transfer of assets shall be deemed to be the agricultural income of the transferor:

      Provided that, for the purposes of this sub-section, a settlement, disposition or transfer shall be deemed to be revocable if it contains any provision for the re-transfer directly or indirectly of the agricultural income or assets to the settlor, disponer or transferor or in any way gives the settlor, disponer or transferor a right to re-assume power directly or indirectly over the agricultural income or assets:

      Provided fur
      

      S.10 Exemption From assessment of income-tax

      Agricultural income-tax shall not be payable on that part of the total agricultural income of a person which is--

      • (a) any sum which he receives out of the agricultural ' income of a Hindu undivided family, an Aliyasantana family or branch or a Marumakkattayam tarwad or tavazhi, if he receives such sum as a member of the family or tarwad or tavazhi and tax under this Act has been levied on the agricultural income;
      • (b) any dividend which he receives as a shareholder out of the agricultural income of a company;
      • (c) any sum which he receives as his share out of the agricultural income of a firm or association of persons, if the tax under this Act has been levied on the agricultural income of such firm or association;
      • (d) any sum which he receives out of the agricultural income in respect of which tax under this Act has already been levied under section 9.
      
      

      S.11 Nonresidents

      • (1) A person who is residing outside the State and who is in receipt of agricultural income from a plantation in the State shall be liable to pay tax on such income; if the non-resident person has an agent in the State, such person and the agent shall be jointly and severally liable for the tax. The assessment may be made either in the name of the non-resident person or his agent or both; and where the assessment is made in the name of the agent, such agent shall be deemed to be, for the purposes of this Act, the assessee in respect of such tax.
      • (2) Any person employed by or on behalf of a person residing out of the State or through whom the non-resident person is in receipt of any agricultural income, upon whom the Agricultural Income-tax Officer has caused a notice to be served of his intention of treating him as the agent of the non-resident person shall, for the purposes of this Act, be deemed to be such agent:

        Provided that no person shall be deem
        

        S.12 Carrying forward of loss

        Where any person sustains a loss in agricultural income in any year, the loss shall be carried forward to the following year and set off against the agricultural income for that year and if it cannot be wholly so 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 six years:

        Provided that, in the case of loss sustained before the commencement of this Act, this section shall apply only to such loss as was sustained in the previous year immediately before such commencement.

        
        

        S.13 Supply of information regarding dividends

        The principal officer of every company shall, on or before the 15th day of June in each year, furnish to the prescribed officer a return in the prescribed form and verified in the prescribed manner of the names and of the addresses, as entered in the register of shareholders maintained by the company, of the shareholders to whom a dividend or aggregate dividends exceeding such amount as may be prescribed in this behalf has or have been distributed during the preceding year and of the amount so distributed to each such shareholder.

        
        

        S.14 Income-tax authorities

        • (1) There shall be the following classes of income-tax authorities for the purposes of this Act, namely:--
          • (a) The Board of Revenue;
          • (b) The Commissioner of Agricultural Income-tax;
          • (c) Assistant Commissioners of Agricultural Income-tax;
          • (d) Agricultural Income-tax Officers;
        • (2) (a) The authorities specified in clauses (6) to (d) of sub-section (1) shall be appointed by the Government.
        • (b) The authorities specified in sub-section (1) shall exercise and perform in such areas, such powers and duties as the Government may, by notification in the Fort St. George Gazette, determine.
        • (3) The Government may, by notification in the Fort St. George Gazette, empower any other officers than the authorities specified in sub-section (1) to exercise such powers and perform such functions and duties under this Act in respect of such classes of persons or classes of income and in such areas, as may be spec
          

        S.15 The Appellate Tribunal

        • (1) The Government shall from time to time appoint, as and when may be necessary, an Appellate Tribunal consisting of one but not more than three members:

          Provided that the member, or as the case may be, at least one member, of the Tribunal, shall be a Judicial Officer not below the rank of District Judge, or an advocate of not less than ten years' standing.

        • (2) Where the Appellate Tribunal consists of more than one member, the judicial officer shall be its Chairman.
        • (3) Where the Appellate Tribunal consists of three members, the following provisions shall apply:--
          • (a) The functions of the Appellate Tribunal may be exercised by a Bench consisting of all the members of the Tribunal or by a Bench consisting of two members constituted by the Chairman or, in the event of the office of a member other than the Chairman being vacant, by a Bench consisting of the Chairman and the other member:

            Provided that
            

            S.16 Return of income

            • (1) Every person whose total agricultural income during the previous year exceeded the maximum amount which is not chargeable to agricultural income-tax shall furnish to the Agricultural Income-tax Officer so as to reach him before the 1st June every year a return in the prescribed form and verified in the prescribed manner, setting forth his total agricultural income during the previous year.
            • (2) In the case of any person whose total agricultural income is, in the opinion of the Agricultural Income-tax Officer, of such amount as to render such person liable to, payment of agricultural income-tax in any financial year, he may serve in that year a notice in the prescribed form requiring such person to furnish 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 setting forth (along with such other particulars as may be provided for in the notice) his total agricultur
              

            S.17 Assessment of income

            • (1) If the Agricultural Income-tax Officer is satisfied that a return made under section 16 is correct and complete, he shall, by order in writing, assess the total agricultural income of the assessee and determine the sum payable by him on the basis of such return.
            • (2) If the Agricultural Income-tax Officer is not satisfied without requiring the presence of the person who made the return or the production of evidence that the return is correct and complete, he shall serve on the person who made the return a notice requiring him on the date specified therein either to attend the office of the Agricultural Income-tax Officer or to produce or to cause to be produced, any evidence on which such person may rely in support of the return.
            • (3) On the day specified in the notice under sub-section (2) or as soon afterwards as may be, the Agricultural Income-tax Officer, after considering such evidence as such person may produce and such other evidence as that officer
              

            S.18 Power to make provisional assessment in advance of regular assessment

            • (1) The Agricultural Income-tax Officer may, at any time after the receipt of a return made under section 16, proceed to make in a summary manner, a provisional assessment of the tax payable by the assessee, on the basis of his return and the accounts and documents, if any, accompanying it, after giving due effect to the allowance referred to in section 12.
            • (2) A partner of a firm may be provisionally assessed under sub-section (1) in respect, of his share in the firm's income, profits and gains, if its return has been received although the return of the partner himself may not have been received.
            • (3) A firm may be provisionally assessed under subsection (1) as if it were an unregistered firm, unless the firm fulfils such conditions as the Government may, by notification in the Fort St. George Gazette, specify in that behalf.
            • (4) There shall be no right of appeal against a provisional assessment made under sub-section (1).
            • (5) For the avoid
              

            S.19 Cancellation of assessment in certain cases

            Where an assessee, within one month from the service of a notice of demand issued as hereinafter provided, satisfies the Agricultural Income-tax Officer that he was prevented by sufficient cause from making the return required by section 16 or that he did not receive the notice issued under sub-section (2) or sub-section (4) of that section or sub-section (2) of section 17 or that he had not a reasonable opportunity to comply, or was prevented by sufficient cause from complying, with the terms of any such notice, the Agricultural Income-tax Officer shall cancel the assessment and proceed to make a fresh assessment in accordance with the provisions of section 17.

            
            

            S.20 Penalty for concealment of income

            • (1) If the Agricultural Income-tax Officer, the Assistant Commissioner, the Commissioner or the Appellate Tribunal is satisfied that any person --
              • (a) has, without reasonable cause, failed to furnish the return of his total agricultural income which he was required to furnish under sub-section (1) or sub-section (2) of section 16, or
              • (b) has, without reasonable cause, failed to furnish such return within the time allowed and in the manner required by sub-section (1) of section 16 or by a notice served under sub-section (2) of that section, or
              • (c) has concealed the particulars of his agricultural income or has deliberately furnished inaccurate particulars of such income, he or it may direct that such person shall pay by way of penalty, in addition to the amount of agricultural income-tax, if any, payable by him, a sum not exceeding that amount:

              Provided that--

              • (a) no penalty shall be imposed under this subsectio
                

            S.21 power to assess individual members of certain associations

            • (1) Where the Agricultural Income-tax Officer is satisfied that any association of individuals other than a Hindu undivided family, and Aliyasantana family or branch, Maru-makkattayam tarwad or tavazhi or a company is under the control of one member thereof, and that such association has been formed or is being used for the purpose of evading or reducing the liability to agricultural income-tax of any member thereof, he may, with the previous approval of the Commissioner of Agricultural Income-tax, pass an order that the sum payable as agricultural income-tax by the association shall not be determined, and thereupon the share of each member in the agricultural income of the association shall be included in his total agricultural income for the purpose of his assessment thereon.

              Explanation.--A member of an association who owns the whole or the major portion of the capital of the association shall not by reason only of that fact be deemed to control the firm or
              

              S.22 Assessment in case of departure from the State

              • (1) Where it appears to the Agricultural Income-tax Officer that any person intends to alienate his right, title and interest in any plantation 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 total 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 each completed previous year included in this 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 of such previous years to the probable date of departure, the Agricultural Income-tax Officer shall estimate the total agricultural income of such person and assess it at the rate appl
                

              S.23 Assessment in case of transfer of right in plantation

              Where a person in receipt of agricultural income from any plantation in the State is found to have transferred his interest in such plantation to another person, the transferor and the transferee shall each be assessed in respect of his actual share, if any, of such agricultural income:

              Provided that 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 transferor, or when the tax in respect of the assessment made for any or all of such years assessed on the transferor 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.

              
              

              S.24 Tax of deceased person payable by representative

              • (1) Where a person dies, his executor, administrator or other legal representative shall be liable to pay, out of the estate of the deceased person, to the extent to which the estate is capable of meeting the charge, the agricultural income-tax assessed as payable by such person or any agricultural income-tax which would have been payable by him under this Act as if he had not died.
              • (2) Where a person dies before the 1st June in any year, or before he is served with a notice under sub-section (2) of section 16 or under section 35, as the case may be, his executor, administrator or other legal representative shall, on the serving of the notice under sub-section (2) of section 16 or under section 35, as the case may be, comply therewith, and the Agricultural Income-tax Officer may proceed to assess the total agricultural income of the deceased person as if such executor, administrator or other legal representative were the assessee.
              • (3) Where a person dies wit
                

              S.25 Assessment in case of discontinued business of company, firm or association

              • (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 fifteen days thereof and where any person fails to give the notice required by this sub-section, such officer may direct that a sum shall be recovered from him by way of penalty not exceeding the amount of agricultural income-tax subsequently assessed on him in respect of any agricultural income of a company, firm or association of persons up to the date of the discontinuance of
                

              S.26 Liability in case of discontinued business or firm or association

              Where agricultural in come is received by a firm or association of persons and the business of such firm or association is discontinued or such firm or association is dissolved, every person who was at the time of such discontinuance or dissolution a partner of such firm or member of such association, shall be jointly and severally liable to assessment on such agricultural income and for the amount of agricultural income-tax payable under this Act by such firm or association and all the provisions of this Act shall, so far as may be, apply to such assessment.

              
              

              S.27 Procedure in registration of firms

              • (1) Application may be made to the Agricultural Income-tax Officer on behalf of any firm, constituted under an instrument of partnership specifying the individual shares of the partners, for registration for the purposes of this Act and of any other enactment for the time being in force relating to agricultural income-tax.
              • (2) 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 manner, as may be prescribed, and it shall be dealt with by the Agricultural Income-tax Officer in such manner as may be prescribed.
              
              

              S.28 Change in constitution of a firm and succession to business

              • (1) Where at the time of making an assessment under section 17, it is found that a change has occurred in the constitution of a firm or that a firm has been newly constituted, the assessment shall be made on the firm as constituted at the time of making the assessment.

                If the agricultural income-tax cannot be recovered from the firm as so constituted, such tax shall be recoverable from the persons who were members of the firm during the previous year.

              • (2) 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 person succeeded in the business cannot be found, the assessment of the agricultural income of the year in which the succession took place up to the date of succession, and fo
                

                S.29 Assessment after partition of a Hindu undivided family, an Aliyasantana family Or branch or Marumakkattayam tarwad Or tavazhi

                • (1) Where at the time of making an assessment under section 17, it is claimed by or on behalf of any member of r. Hindu undivided family, an Aliyasantana family or branch or a Marumakkattayam tarwad or tavazhi hitherto assessed as undivided that a partition has taken place among the members or groups of members of such family, branch, tarwad or tavazhi, the Agricultural Income-tax Officer shall make such inquiry thereinto as he may think fit, and if he is satisfied that the joint family property has been partitioned among the various members or groups of members in definite portions, he shall record an order to that effect:

                  Provided that no such order shall be recorded until notice of the inquiry has been served on all the adult members of the family, branch, tarwad or tavazhi entitled to the property as far as may be practicable or in such other manner as may be proscribed.

                • (2) Where such an order has been passed, the Agricultural Income-tax Offi
                  

                S.30 Notice of demand

                When any tax or penalty is due in consequence of any order passed under or in pursuance of this Act, the Agricultural Income-tax Officer shall serve on the assesses a notice of demand in the prescribed form specifying the sum so payable.

                
                

                S.31 Appeal against assessment

                • (1) Any assessee objecting to the amount of income assessed or tax determined or loss computed under section 17 or denying his liabilty to be assessed under this Act or objecting to any order under any of the provisions of sections 19, 20, 21, 25, 29 and 41 made by the Agricultural Income-tax Officer or to the cancellation by him of the registration of a firm or to the refusal to register a firm may appeal to the Assistant Commissioner against the assessment or against such order:

                  Provided that no appeal shall lie in respect of an assessment made under sub-section (4) of section 17.

                • (2) The appeal shall be in the prescribed form and shall be verified in the prescribed manner.
                • (3) The appeal shall be presented within a period of thirty days from the date of service of the order; but the Assistant Commissioner may admit an appeal presented after the expiration of the said period, if he is satisfied that the appellant had sufficient cause fo
                  

                S.32 Appeals against orders of Assistant Commissioner

                • (1) Any assessee objecting to an order passed by an Assistant Commissioner under section 20 or section 31 may appeal to the Appellate Tribunal within sixty days of the date on which such order is communicated to him.
                • (2) The Commissioner may, if he objects to any order passed by an Assistant Commissioner under section 31, direct the Agricultural Income-tax Officer to appeal to the Appellate Tribunal against such order, and such appeal may be presented within sixty days of the date on which the order is communicated to the Commissioner by the Assistant Commissioner.
                • (3) The Appellate Tribunal may admit an appeal after the expiry of the sixty days referred to in sub-sections (1) and (2) if it is satisfied that there was sufficient cause for not presenting it within that period.
                • (4) An appeal to the Appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner, and shall, except in the case of an appeal referred to i
                  

                S.33 Appellate against an order of refusal to refund

                The provisions of sections 31 and 32 shall, so far as may be, apply to any order of refusal of any refund admissible tinder this Act or the rules made thereunder.

                
                

                S.34 Revision

                • (1) The Commissioner may, of his own motion or on application by an assessee, call for the record of any proceeding under this Act which has been taken by any authority subordinate to him and may 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:

                  Provided that he shall not pass any order prejudicial to an assessee without hearing him or giving him a reasonable opportunity of being heard:

                  Provided further that an order passed declining to interfere shall not be deemed to be an order prejudicial to the assessee.

                • (2) The Commissioner shall not revise any order under sub-Section (1) if--
                  • (a) where an appeal against an order lies to the Appellate Tribunal, the time within which such appeal may be made has not expired; or
                  • (b) where an appeal against the order has been made to the Appellate Tribunal, the appeal is pending before
                    

                S.35 Income escaping assessment

                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 low a rate, the Agricultural Income-tax Officer may, at any time, within three years of the end of that year serve on the person liable to pay the tax 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 sub-section (2) of section 16 and may 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 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.

                
                

                S.36 Rectification of mistake

                • (1) The authority which passed an order on appeal or revision may at any time within three years from the date of such order passed by him on appeal or in revision and the Agricultural Income-tax Officer may at any time within three years from the date of any assessment or refund order passed by him, of his own motion, rectify any mistake apparent from the record of the appeal, revision, assessment or refund, as the case may be, and shall, within the like period, rectify any such mistake which has been brought to his notice by an assessee:

                  Provided that no such rectification shall be made having the effect of enhancing an assessment or reducing a refund unless the appellate or revisional authority or the Agricultural Income-tax Officer, as the case may be, has given notice to the assessee of his intention so to do and has allowed him a reasonable opportunity of being heard.

                • (2) Where any such rectification has the effect of reducing the assessment
                  

                S.37 [Omitted]

                1[Omitted]

                1 Section 37 was Omitted by section 2 of the Madras Plantations Agricultural Income-tax (Amendment) Act, 1956 (Madras Act XXXV of 1956), which came into force on the 1st April 1957.

                
                

                S.38 Power to take evidence on oath, etc.

                The Appellate Tribunal, the Commissioner, the Assistant Commissioner and the Agricultural Income-tax Officer shall, for the purpose of this Chapter, have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 (Central Act V of 1908), when trying a suit, in respect of the following matters, namely:--

                • (a) enforcing the attendance of any person and examining him on oath or affirmation;
                • (b) compelling the production of documents; and
                • (c) issuing commissions for the examination of witnesses, and for ascertaining the yield and cultivation expenses in respect of any plantation; and any proceeding before the Appellate Tribunal, the Commissioner or Assistant Commissioner or the Agricultural Income-tax Officer 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 (Central Act XLV of 1860).
                
                

                S.39 Power to call for information, etc.

                • (1) The Assistant Commissioner or the Agricultural Income-tax Officer may for the purposes of this Act --
                  • (i) require any Hindu undivided family, an Aliyasantana family or branch, a Marumakkattayam tarwad or a tavazhi possessing separate properties, a firm or a company, to furnish a return of the names of all the members of the family, branch, tarwad, tavazhi, firm or company, as the case may be, their addresses and such other particulars as may be required for the purposes of assessment;
                  • (ii) require any person whom he has reason to believe 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 trustee, guardian or agent and of their addresses;
                  • (iii) impound and retain in his custody for such period as he thinks fit any books of account or other documents produced before him in any proceedings under this Act:

                  Provided that the Assistant Commissioner or the Agricult
                  

                  S.40 Recovery of tax and penalties

                  Any amount specified as payable in a notice of demand under section 30 or an order under section 31, 32 or 34 shall be paid in such number of instalments, within such time, at such place, to such person and in such manner as may be prescribed, and any assessee failing so to pay shall be deemed to be in default:

                  Provided that, when an assessee has presented an appeal under section 31, the Agricultural Income-tax Officer may, in his discretion, treat the assessee as not being in default so long as such appeal is undisposed of.

                  
                  

                  S.41 Mode and time of recovery

                  • (1) When an assessee is in default in making a payment of agricultural income-tax, the Agricultural Income-tax Officer may, in his discretion, direct that, in addition to the amount of the arrears, a sum not exceeding that amount shall be recovered from the assessee by way of penalty.
                  • (2) For the purposes of sub-section (1), the Agricultural Income-tax Officer may direct the recovery of any sum less than 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 however that the total sum so directed to be recovered shall not exceed the amount of the arrears payable.
                  • (3) 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 assesses the amount specified therein as if it were an arrear of land revenue:
                    

                  S.42 Right, title and interest in property sold for arrears of tax in certain cases

                  • (1) Where any property of a Hindu undivided family, an Aliyasantana family or branch, or a Marumakkattayam tarwad or tavazhi is sold for the realization of arrears of agricultural income-tax, the right, title and interest of all the members of such family, branch, tarwad, or tavazhi in the property shall pass to the purchaser.
                  • (2) Where any person has been assessed to agricultural income-tax on the agricultural income derived from a plantation held by him wholly or partly for the benefit of other persons and the tax payable by him is in arrears, the plantation so held by him may be attached and sold for the realization of such arrears and on such sale, the right, title and interest of such person in the said plantation shall pass to the purchaser.
                  
                  

                  S.43 Recovery of penalties

                  Any sum imposed by way of penalty under the provisions of section 20, section 25 or section 41 shall be recoverable in the manner provided in this Chapter for the recovery of arrear of tax.

                  
                  

                  S.44 Refunds

                  • (1) If any person satisfies the Agricultural Income-tax Officer that the amount of agricultural income-tax paid by him or on his behalf or treated as paid on his behalf for any year exceeds the amount with which such person is properly chargeable under this Act for that year, he shall be entitled to a refund of any such excess.
                  • (2) The appellate or revisional authority, in the exercise of his appellate or revisional powers, if satisfied to the like effect shall cause a refund to be made by the Agricultural Income-tax Officer of any amount found to have been wrongly paid or paid in excels.
                  • (3) Where agricultural income of one person is included under any provision of this Act in the total agricultural income of any other person, such other person only shall be entitled to a refund under this section in respect of such income.
                  • (4) Nothing in this section shall operate to validate any objection or appeal which is otherwise invalid or to authorize the r
                    

                  S.45 Refunds admissible under rules

                  Refunds shall also be admissible under this Act in such cases and to such extent as may be prescribed.

                  
                  

                  S.46 Power to set off amount of refund against tax remaining payable

                  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 Assistant 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 agricultural income-tax, if any, remaining payable by the person to whom the refund is due.

                  
                  

                  S.47 Power of representative of deceased person or persons disabled to make claim on his behalf

                  Where through death, incapacity, bankruptcy, liquidation or other cause, a person who would but such cause have been entitled to a refund under any of the provisions of this Act, or to make a claim under section 44 is unable to receive such refund or to make such claim, his executor, administrator or other legal representative or the trustee or receiver, as the case may be shall be entitled to receive such refund or to make such claim for the benefit of such person or his estate.

                  
                  

                  S.48 Limitation of claims for refund

                  No claim to any refund of agricultural income-tax under this Chapter shall be allowed, unless it is made within three years from the last day of the financial year commencing next after the expiry of the previous year in which the agricultural income was received or one year from the date on which the assessment is completed, whichever is later.

                  
                  

                  S.49 False statements in declaration

                  If any person makes a statement in a verification mentioned in section 16 or sub-section (2) of section 31 or sub-section (4) of section 32 or in any application under section 65, 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 Indian Penal Code (Central Act XLV of 1860).

                  
                  

                  S.50 Failure to furnish return or to supply information

                  If any person fails without reasonable cause or excuse--

                  • (a) to furnish in due time any of the returns specified in sub-section (1) or sub-section (2) of section 16, section 13 or section 39, or
                  • (b) to grant inspection or allow copies to be taken in accordance with the provision of section 60, or
                  • (c) to produce or cause to be produced on or before the date mentioned in any notice under sub-section (4) of section 16, such accounts or documents as are referred to in the notice, he shall be punishable with fine which may extend to five rupees for every day during which the default continues.
                  
                  

                  S.51 Prosecution to be at the instance of the Assistant Commissioner

                  • (1) A person shall not be proceeded against for an offence under section 49 or section 50 except at the instance of the Assistant Commissioner.
                  • (2) Before instituting proceedings against any person under sub-section (1), the Assistant Commissioner shall call upon such person to show cause why proceedings should not be instituted against him.
                  • (3) The Assistant Commissioner may, either before or after the institution of proceedings, compound any such offence.
                  
                  

                  S.52 Disclosure of information by public servant

                  • (1) All particulars contained in any statement made, return furnished or accounts or documents produced, under the provisions of this Act or in any evidence given or affidavit or deposition made in the course of any proceedings under this Act other than proceedings under this Chapter or in any record of an assessment proceeding or any proceeding relating to the recovery of a demand prepared for the purposes of this Act shall be treated as confidential and notwithstanding anything contained in the Indian Evidence Act, 1872 (Central Act I of 1872), no Court shall, save as provided in this Act, be entitled to require any public servant to produce before it any such return, accounts, documents or record or any part of such record or to give evidence before it in respect thereof.
                  • (2) If a public servant discloses any particulars contained in any such statement, return, accounts, documents, evidence, affidavit, deposition or record, he shall be punishable with imprisonment
                    

                  S.53 Place of assessment

                  • (1) Subject to any orders passed under sub-section (2), the agricultural income of a person shall be assessed by the Agricultural Income-tax Officer of the area in which is situated the plantation from which the greater part of the income is derived:

                    Provided that, when an assessee has made a return under sub-section (1) of section 16 to the Agricultural Income-tax Officer having jurisdiction over the assessee's place of residence or the place where any of his plantation 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 for reasons to be recorded in writing he passes an order that the assessment shall be made in any other place.

                  • (2) (a) An assessee who has not made a return under section 16 may, before the expiry of the time allowed for the submission of the return, apply to the Agricultural Income-tax Officer of the ar
                    

                  S.54 Revision by High Court

                  • (1) Within sixty days of the date on which he is served with a notice of the order, the assessee or the Commissioner, in the case of an order under sub-section (5) of section 32, and the assessee, in the case an of order under section 34 enhancing the assessment or otherwise prejudicial to him, may prefer an application to the High Court against the order on the ground that the Appellate Tribunal or, as the case may be, the Commissioner has either decided erroneously or failed to decide any question of law:

                    Provided that the High Court may admit an application preferred after the period of sixty days aforesaid if it is satisfied that the applicant had sufficient cause for not preferring the application within that period.

                  • (2) The application shall be in the prescribed form, shall be verified in the prescribed manner and shall, where it is made by the assessee, be accompanied by a fee of one hundred rupees or such lesser sum as may be prescribed.

                  S.55 Appearance by authorized representative

                  • (1) Any assessee who is entitled or required to attend before any Agricultural Income-tax Authority in connexion with any proceeding under this Act otherwise than when required under section 38 to attend personally for examination on oath or affirmation, may attend either in person or by any person duly authorized by him in writing in this behalf being a relative or a person wholly or principally employed in the service of the assessee or a lawyer or an accountant or an Income-tax practitioner and not being disqualified on the ground of misconduct by or under any law or under any order of Government.
                  • (2) No person who has been dismissed from Government service shall be qualified to represent an assessee under sub-section (1); and if any lawyer or chartered accountant or an Income-tax practitioner is found guilty of misconduct in connexion with any proceedings under the Indian Income-tax Act, 1922 (Central Act XI of 1922), or this Act by the authority empowered to tak
                    

                  S.56 Receipt to be given

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

                  
                  

                  S.57 Indemnity

                  Every person deducting, retaining or paying any tax in pursuance of this Act in respect of any agricultural income belonging to any other person is hereby indemnified for the deduction, retention or payment thereof.

                  
                  

                  S.58 Manner of service of notice

                  • (1) A notice or requisition under this Act may be served on the person therein named either by post or, as if it were a summons issued by a court under the Code of Civil Procedure, 1908 (Central Act V of 1908).
                  • (2) Any such notice or requisition may, in the case of a firm, Hindu undivided family, an Aliyasantana family or branch or a Marumakkattayam tarwad or tavazhi be addressed to any member of the firm or to the manager, yajaman or karnavan, or any adult member of the family, branch, tarwad or tavazhi and, in the case of any other association of persons, be addressed to the principal officer thereof,
                  
                  

                  S.59 Power to grant extension of time for returns, etc.

                  The Agricultural Income-tax Officer may, in his discretion, in the case of any person or class of persons, extend the date before which the return under sub-section (1) of section 16 has to be furnished or, on application by an assessee, allow him such extension or extensions of time as the officer thinks fit to furnish the return or comply with the terms of a notice under this Act.

                  
                  

                  S.60 Power to inspect registers of members of company, etc.

                  Any Agricultural Income-tax Authority or any person authorized by him, in writing in that behalf may, during such hours as may be prescribed, inspect and, if necessary, take copies or cause copies to be taken of any register of the members, debenture holders or mortgagees of any company or of any entry in such register.

                  
                  

                  S.61 Power to make rules

                  • (1) The Government may, after previous publication, make rules for carrying out the purposes of this Act.
                  • (2) In particular and without prejudice to the generality of the foregoing power, they may make rules--
                    • (a) as to the manner in which and the procedure by which agricultural income of a person shall be computed;
                    • (b) as to the deductions to be made in the computation of agricultural income;
                    • (c) as to the special deductions and allowances in cases where expenditure has to be incurred for a number of years, before income is derived therefrom;
                    • (d) as to the form of returns under section 16 and the manner in which they should be verified;
                    • (e) as to the form of notice of the demand mentioned in section 30;
                    • (f) as to the powers and duties of Income-tax Authorities appointed under sub-section (2) of section 14 and the relation of such authorities to each other;
                    • (g) as to the form in which appeals
                      

                  S.62 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 proceeding shall lie against any officer of the Government for anything in good faith done or intended to be done under this Act.

                  
                  

                  S.63 Computation of period of limitation

                  In computing the period of limitation prescribed for any appeal under this Act or for any application under section 54, the date on which the order complained of was made and the time requisite for obtaining a copy of such order shall be excluded.

                  
                  

                  S.64 Amendment of Madras Act XIX of 1954

                  In section 3 of the Madras Land Revenue (Surcharge) Act, 1954 (Madras Act XIX of 1954), the Explanation shall be numbered as Explanation I and after the Explanation as so numbered, the following Explanation shall be inserted, namely: --

                  "Explanation II. -- No surcharge shall be levied under this section from a landholder who is liable to pay land revenue in respect only of a plantation or plantations as defined in the Madras Plantations Agricultural Income-tax Act, 1955 (Madras Act V of 1955); but where he is liable to pay land revenue in respect also of other lands surcharge under this section shall be levied only on the land revenue payable by him in respect of such other lands but at the average rate applicable to the aggregate of the land revenue payable in respect of such plantation or plantations and of such other lands.".

                  
                  

                  S.65 Composition of agricultural income-tax

                  • (1) Any person, who derives agricultural income from a plantation not exceeding twenty acres in extent if used for growing tea or an extent equivalent thereto if used for growing any crop other than tea, may apply to the prescribed officer for permission to compound the agricultural income-tax payable by him and to pay in lieu thereof a lump sum at the rate or rates specified in Part II of the Schedule:

                    Provided that the lump sum payable under this subsection shall be calculated only on the extent of the plantation which is in excess of five acres if used for growing tea or of an extent equivalent thereto if used for growing any crop other than tea.

                    Explanation.- In determining the extent of a plantation for the purposes of this section and of the Schedule, three acres of plantation used for growing any crop other than tea shall be taken to be equivalent to one acre of plantation used for growing tea and the plantation growing tea as well as the plantati