Judgment

Rohinton Fali Nariman, J.

1. The present set of appeals are concerned with the validity of an explanation added retrospectively to Section 26(4) of the Karnataka Agricultural Income Tax Act (hereinafter referred to as 'Act').

2. On facts, the present appeals are concerned with the assessment of agricultural income received by a firm after it is dissolved insofar as the income of the firm pertains to actual cash receipts after the firm is dissolved but relating to income earned prior to dissolution.

3. Section 26 of the Act reads as follows:

26. Assessment in case of discontinued 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 the 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