Act No. 24 of 1947
09th July, 1947
An Act To Provide For Imposition Of A Tax On Agricultural Income.
(1) This Act may be called the Orissa Agricultural Income-tax Act, 1947.
(2) It shall extend to the whole of the Province of Orissa*.
(3) This section shall come into force at once and the remaining sections of this Act shall come into force on such date as the Provincial Government may, by notification, appoint.
*. Extended to all the partially-excluded areas of the Province by notification No. 6511- C.T. 63/47-F., dated the 3rd September 1947 (vide Orissa Gazette), dated the 5th September 1947, Part III. page 287.
In this Act, unless there is anything repugnant in the subject or context-
(a) "agricultural income" means-
(1) any rent or income derived from land which is used for agricultural purposes, and is either assessed to land revenue in the Province of Orissa or subject to a local cess or rate assessed and collected by officers of the Crown as such;
(2) 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 paragraph (ii);
(3) 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 receiver of rent-in-kind, of any land with respect to which, or the produce of which, any operation mentioned in paragraphs (ii) and (iii) of sub-clause (2) is carried on : Provided that the building is on or in the immediate vicinity of the land, and is a building which the receiver of rent or revenue or the cultivator or the receiver of the rent-in-kind by reason of his connection with the land, requires as a dwelling house, or as a store house, or other out-building;
(b) "agricultural income-tax" means the tax payable under this Act;
(c) "Agricultural Income-tax Officer" means a person appointed to be an Orissa Agricultural Income-tax Officer under sub-section (2) of section 18;
(d) "agricultural year" means where the Oriya year prevails, the year commencing on the first day of Baisakh; where the Fosli or Amli year prevails the year commencing on the first day of Aswin; and where any other year prevails for agricultural purposes, that year;
(e) "assessee" means a person by whom agricultural income tax is payable;
(f) "Assistant Agricultural Income tax Officer" means a person appointed to be an Orissa Assistant Agricultural Income-tax Officer under sub-section (2) of section 18;
(g) "Collector of Agricultural Income-tax" means a person appointed to be an Orissa Collector of Agricultural Income-tax under sub-section (2) of section 18;
(h) "Company" means a company as defined in the Indian Companies Act, 1913 (VII of 1913), or formed in pursuance of an Act of Parliament or of Royal Charter or Letters Patent, or of an Act of the Legislature of a British possession, and includes any foreign association carrying on business in British India, whether incorporated or not and whether its principal place of business is situate in British India or not, which the Provincial Government may, by general or special order, declare to be a company for the purposes of this Act;
(i) "financial year" means the year beginning on the first day of April and ending on the 31st day of March next following;
(j) "firm" has the same meaning as in the Indian Partnership Act, 1932 (IX of 1932);
(k) "landlord" means any individual who receives rent in cash or kind from a tenant and includes a 'landlord' as defined in the Orissa Tenancy Act, 1913 (B. and O. Act II of 1913), Central Provinces Tenancy Act, 1898 (C. P. Act II of 1898), Central Provinces Tenancy Act, 1920 ( ( C. P. Act I of 1908)), and 'landholder' as defined in the Madras Estates Land Act, 1908 (Madras Act I of 1998);
(l) "person" means any individual or association of individuals, owning or holding property for himself or for any other, or partly for his own benefit and partly for another, either as owner, trustee, receiver, common manager, administrator or executor or in an capacity recognised by law and. includes a Hindu undivided family, firm, company and the Ruler of an Indian State;
(m) "prescribed" means prescribed by rules made under this Act;
(n) "previous year" means the twelve months ending on the 31st day of March preceding the year for which the asessment is to be made or, if the accounts of the assessee have been made up to a date within the said twelve months in respect of a year ending on any date other than the 31st day of March than at the option of the assessee the year ending on the day to which his accounts have been so made up: Provided that if the option has once been exercised by an assessee he shall not exercise it again so as to vary the meaning of the expression "previous year" as then applicable to him except with the consent of any agricultural income-tax authority and upon such conditions as he may think fit;
(o) "principal officer" used with refer nee to an Indian State, a company or any other association means-
(i) the manager or agent in. Orissa of the Ruler of the Indian State, or
(ii) the secretary, treasures, manager or agent of the company or association or
(iii) any person, connected with the company or association upon whom any agricultural income tax authority has served a notice of his intention of treating him as principal officer thereof;
(p) "Ruler of an Indian State" means the Ruler of such State in his public or official capacity; and
(q) "total agricultural income" means the aggregate of the amounts of agricultural income derived from land situated in the Province of Orissa and received whether within or without the Province and determined in the manner laid down in sections 6 and 7.
Agricultural income-tax at the rate or rates specified in the Schedule shall be charged to ench financial 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 the agricultural income-tax shall not be charged on the agricultural income of the Cent at Government or any Provincial. Government or any local authority.
Save as hereinafter provided, this Act shall apply to all agricultural income derived from land situate in the Province of Orissa.
Agricultural income-tax shall be payable by every person whose total agricultural income of the previous year exceeds five thousand rupees.
The agricultural income referred to in sub-clause (1) of clause (a) of section 2 shall be deemed to be the sum realised in the previous year on account of agricultural income mentioned in the said sub-clause (1), alter making the following deductions:-
(a) any sums actually paid in the previous year on account of land revenue, local rates and cesses, water-rate or water-cess, and municipal taxes in respect of the land from which the agricultural income is derived;
(b) any rent actually paid in the previous year to a superior landlord in respect of the land from which the agricultural income is derived;
(c) a sum equal to such percentage as may be prescribed of the total amount of the rent which accrued due in the previous year in respect of the charges for collecting the same;
(d) any rate paid or payment made in the previous year under the Village Chaukidari Act, 1870 (Bengal Act VI of 1870), the Khond-mals Laws Regulation, 1936 (Orissa Regulation IV of 1936), or the Angul Laws Regulation, 1936 (Orissa Regulation V of 1936) in respect of any building used by the assessee as an office for collection of the rents due in respect of the land from which such agricultural income is derived;
(e) 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 such agricultural income is derived;
(f) the amount paid in the previous year on account of the repairs to any capital assets used in connection with the collection of rents due in respect of the land from which such agricultural income is derived;
(g) interest actually paid in the previous year on any amount borrowed and actually spent on any capital expenditure incurred after the passing of this Act for the benefit of the land from which such agricultural income is derived;
(h) depreciation at the prescribed rate in respect of any capital asset purchased or constructed after the commencement of this Act for the benefit of the land from which such agricultural income is derived or for the purpose of deriving such agricultural income from such land;
(i) any interest paid in the previous year on any mortgage or any other kind of debt or any interest paid in the previous year on other capital charge incurred for the purpose of acquiring the property from which such agricultural income is derived;
(j) When the property from which such agricultural income is derived is subject to a mortgage created before the 1st October 1946, the amount of any interest actually paid in the previous year on such mortgage; and
(k) such other deductions as may be prescribed.
(1) The agricultural income referred to in sub-clause (2 of clause (a) of section 2 shall be assessed on the net amount o such income determined in the prescribed manner.
(2) Rules prescribing the manner of determining the net amount of agricultural income for the purpose of this section shall provide that the following deductions shall be made from the gross amounts of such income, namely:-
(a) any sums actually paid in the previous year as land revenue, a local rates and cesses water-rate or water-cess, and municipal taxes in respect of the land from which the agricultural income is derived.
(b) any rent actually paid in the previous year to a superior landlord in respect of the land from which the agricultural income is derived;
(c) any rate paid or payment made in the previous year under the Village Chaukidari Act, 1870 (Bengal Act VI of 1870), the Khondmals Laws Regulation, 1936 (Orissa Regulation IV of 1936) or the Angul Laws Regulation, 1936 (Orissa Regulation V of 1936), in respect of any building used for the purposes of the cultivation of the land from which such agricultural income is derived;
(d) the expenses of cultivating the crop from which such agricultural income is derived, of transporting such crop to market, including the maintenance of agricultural implements and cattle required for the purpose of such cultivation and for transporting the crop to market;
(e) any tax, cess or rate paid under any Orissa Act on the cultivation or sale of the crop from which such agricultural income is derived;
(f) (i) 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 such agricultural income is derived;
(ii) any expense incurred in the previous year on the maintenance of any capital asset purchased or constructed if such maintenance is required for the purpose of deriving such agricultural income from such land;
(iii) interest actually paid in the pervious year on any amount borrowed and actually spent on any capital expenditure incurred after the passing of the Act for the benefit of the land from which such agricultural income is derived, or for the purpose of deriving such agricultural income from such land;
(iv) depreciation at the prescribed rate in respect of any capital asset purchased or constructed after the commencement of this Act for the benefit of the land from which such agricultural income is derived or for the purpose of deriving such agricultural income from such land, and
(v) any interest paid in the previous year on any mortgage or other capital charge incurred for the purposes of acquiring the property from which such agricultural income is derived or for the purposes of cultivation of the property: Provided that no deduction shall be made under this clause, if it has already been made under section 6; and
(g) such other deductions as may be prescribed.
(1) Where the assessee is a trustee and the trust under which he holds the property is a trust, created for public purposes of a charitable or religious nature, any sum derived from land held under such trust and actually spent for the said purposes, shall not be included in the total agricultural income of such assessee.
(2) In this section purposes of a charitable nature include relief of the poor, education, medical relief and advancement of any other object of general public utility.
All agricultural income of Muslim trusts referred to in section 3 of the Musalman Wakf Validating Act, 1913 (VI of 1913), created before the commencement of this Act, shall be excluded from the operation of this Act:
Provided that the share of a beneficiary under a trust under the aforesaid Act, commonly known as Wakfalalaulad, shall not be exempted and the tax may be realised from the mutawali and the basis of taxation shall be the share of each beneficiary.
Explanation-For the purposes of this section, a beneficiary means the settler, his family, children and descendants.
(1) The total agricultural income of a Hindu undivided family shall be treated as the income of one individual and assessed as such: Provided that if a Hindu undivided family consists of brothers only as explained in the Schedule, the total agricultural income of the family shall be assessed at the rate specified in the Schedule.
(2) The income derived by a woman from her stridhana property snail not be included in the income of the Hindu undivided family.
(1) Save as provided in sections 9, 12 and 13, if a person holds laud from which agricultural income is derived partly for his own benefit and partly for the benefit of beneficiaries or wholly for the benefit of beneficiaries, agricultural income-tax shall be assessed on the total agricultural income derived from such land at the rate which would nave been applicable if such person had held the land exclusively for his own benefit, and the agricultural income-tax so payable shall be assessed on the person homing such land, and he shall be liable to pay the same.
(2) Any person holding such land shall be entitled, before paying to any benencrary the amount of agricultural income which such beneficiary is entitled to receive from the agricultural income derived from such land, to deduct the amount of agricultural income-tax at the rate at which the agricultural income is or will be assessed under sub-section (1)
Explanation-In this section "beneficiary" means a person legally entitled to a portion of the agricultural Income derived from the land.
Where any person holds land, from which agricultural income is derived, as a common manager appointed under any law for the time being in force or under any agreement or as receiver, administrator or the like on behalf of persons jointly interested in such land or in the agricultural income derived therefrom, the aggregate of the sums payable as agricultural income-tax by each person on the agricultural income derived from such land and received by him shall be assessed on such common manager, receiver, administrator, or the like, and he shall be deemed to be the assessee in respect of the agricultural income tax so payable by each such person and shall be liable to pay the same.
In the case of agricultural income chargeable under this Act, which is received by the Court of Wards, the Administrator General or the Official Trustee, the tax shall be levied upon and recoverable from such Court of Wards, Administrator-General, or Official Trustee, in the like manner and to the same amounts as it would be leviable upon and recoverable from any person on whose behalf such agricultural income is received and all the provisions of this Act shall apply accordingly.
(1) In computing the total agricultural income of any individual for the purpose of assessment there snail be included-
(a) so much of the agricultural income of a wife or minor child of such individual as arise directly or indirectly-
(i) from the membership of the wife in a firm of which her husband is a partner,
(ii) from the admission of the minor to the benefits of a partnership in a firm of which such individual is a partner;
(iii) from assets transferred directly or indirectly to the wife by the husband otherwise than for adequate consideration or in connection with an agreement to live apart, or
(iv) from assets transferred directly or indirectly to the minor child, not being a married daughter, by such individual otherwise than for adequate consideration; and
(b) so much of the total agricultural income of any person or association of person as arises from assets transferred otherwise than for adequate consideration to the person or association by such individual for the benefit of his wife or a minor child or both.
(2) Nothing in this section shall affect the operation of sub-section (2) of section 10.
(1) (a) Agricultural income-tax shall not be payable by an assessee in respect of any sums paid by him out of his total agricultural income to effect an insurance on his own life or on the life of his wife, or in respect of a contract for a deferred annuity on his own life or on the life of his wife, or as a contribution to any provident fund to which the Provident Fund Act. 1925 (XIX of 1923), applies : Provided that agricultural income-tax shall be payable on the remainder of the total agricultural income of such assessee at the rate which would have been applicable if such deduction had not been made.
(b) Nothing in this sub-section shall be deemed to entitle an assessee, who is assessed to income-tax under the Indian Income-tax Act, 1922 (Act XI of 1922) to claim a deduction in respect of any sum paid by him as mentioned in clause (a), if such sum was exempted under section 15 of the said Act.
(2) Where the assessee is a Hindu undivided family, there shall be exempted under sub-section (1) any sums paid to effect an insurance on the life of any member of the family.
(3) The aggregate of any sums exempted under this section shall not exceed one-sixth of the total agricultural income of the assessee.
Agricultural income-tax shall not be payable by an assessee in respect of any amount actually spent by him out of his total agricultural income for the benefit of the people of the Province, for charitable purposes such as relief of the poor, education, medical relief and the advancement Of any other object of general public utility : Provided that agricultural income-tax shall be payable on the reminder of the total agricultural income of such assessee at the rate which would have been applicable if such deduction had not been made.
(1) In the case of any person residing outside the Province of Orissa, his total agricultural income shall be chargeable to agricultural income-tax either in his name or in the name of his agent and in the latter case, such agent shall be deemed to be for all 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 Province, or through whom the non-resident person is in receipt of any agricultural income upon whom the Agricultural Income-tax Officer or the Assistant 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 all the purposes of this Act, be deemed to be such agent: Provided that no person shall be deemed to be the agent of a non-resident person, unless he has had an opportunity of being heard by the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer as to his liability.
(3) Where a notice under this Act has to be served on a con-resident person it shall be served in the prescribed manner.
(1) There shall be the following classes of agricultural income tax authorities for the purposes of this Act, namely:--
(a) the Revenue Commissioner;
(b) the Orissa Collector of Agricultural Income-tax;
(c) the Orissa Agricultural Income-tax Officers;
(d) the Orissa Assistant Agricultural Income-tax Officers.
(2) The authorities specified in clauses (b), (c) and (d) of sub-section (1) shall be appointed by the Governor and shall exercise and perform in such areas as the Provincial Government may, by notification, determine, the prescribed powers and duties and their conditions of service and their relation to each other shall be such as may be prescribed.
(3) The Provincial Government may by notification empower any officer other than the authorities specified in clauses (6), (c) or (d) to exercise such powers and perform such duties as may be prescribed.
(1) The principal officer of every company shall prepare and on or before the prescribed date in each year, furnish to the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer as the case may be, a return in the prescribed form and verified in the prescribed manner of the total agricultural income of the company during the previous year: Provided that the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer may, in his discretion, extend the date for the delivery of the return in the case of any company or class of companies.
(2) In the case of any person other than a company whose total agricultural income is, in the opinion of the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer, of such amount as to render such person liable to the payment of agricultural income-tax for an financial year, the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer, as the case may be, shall serve in that financial year a notice in the prescribed form upon him requiring him to furnish, within the prescribed period, a return in the prescribed form and verified in the prescribed manner setting forth his total agricultural income during the previous year.
(3) If any person having furnished a return under sub-section (1) or sub-section (2), within the time allowed by or under the appropriate sub-section, discovers any omission or wrong statement therein, he may furnish a revised return at any time before the assessment is made and any return so made shall be deemed to be made in due time under this section.
(1) If the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer is satisfied that a return made under section 19 is correct and complete, he shall assess the total agricultural income of the assessee and shall determine the sum payable by him on the basis of such return.
(2) If the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer has reason to believe that a return made under section 19 is incorrect or incomplete, he shall serve on the person who made the return a notice requiring him, on the date to be therein specified, either to attend at the office of the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer or to produce or to cause to be there produced any evidence on which such person may rely in support of the return.
(3) On the day specified in the notice issued under sub-section (2) or as soon afterwards as may be, the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer, after hearing such evidence as such person may produce and such other evidence as the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer may require on specified points, shall by an order in writing, assess the total agricultural income of the assessee and determine the sum payable by him on such assessment.
(4) If the principal officer of any company or other person fails to make a return under sub-section (1) or sub-section (2) of section 19, as the case may be, or having made the return, fails to comply with all the terms of the notice issued under subsection (2) of this section or to produce any evidence required under sub-section (3) of this section, the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer shall make the assessment to the best of his judgment: Provided that before making such assessment, the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer may allow the assessee such further time as he thinks fit to make the return or comply with the terms of the notice or to produce the evidence.
(5) Save as otherwise provided in section 30 no person, other than a company, on whom a notice under sub-section (2) of section 19 has not been served shall be liable to pay agricultural income-tax.
(1) If the Assistant Agricultural Income-tax Officer or the Agricultural Income-tax Officer or the Collector of Agricultural Income-tax in the course of any proceeding under this Act is satisfied that any person- -
(a) has without reasonable cause failed to furnish the return of total agricultural income which he was required to furnish under sub-section (1) or subsection (2) of section 19 or under section 30 or has without reasonable cause failed to furnish it within the time allowed and in the manner required by a notice under those sections; or
(b) has without reasonable cause failed to comply with a notice under sub-section (2) of section 20; or
(c) has concealed the particulars of his agricultural income or has deliberately furnished inaccurate particulars of such income;
he may direct that such person shall pay by way of penalty, in the cases referred to in clauses (a) and (b) in addition to the amount of agricultural income-tax, if any, payable by him a sum not exceeding that amount, and, in the case referred to in . clause (c), in addition to any agricultural income-tax payable by him, a sum not exceeding the amount of tax, if any, which would have been avoided if the agricultural income so returned by him had been accepted as the correct income: Provided that-
(a) no penalty shall be imposed under this sub-section upon a person who has failed to comply with a notice under sub section (2) of section 19 or under section 30 if he proves that he has no income liable to tax;
(b) no penalty shall be imposed under this sub-section upon any person assessable as the agent of any person not a resident in the Province of Orissa for failure to furnish the return under section 19 unless a notice under sub-section (2) thereof or under section 30 has been served on him.
(2) No order under sub-section (1) shall be made unless the assessec has been heard or has been given a reasonable opportunity for being heard.
(3) No prosecution for an offence against this Act shall be instituted in respect of the same facts on which a penalty has been imposed under sub-section (1)
(4) If the Collector of Agricultural Income-tax makes an order under sub-section (1), he shall forthwith send a copy of the same to the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer concerned.
(1) Where the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer is satisfied that any firm or other association of individuals carrying on any business, other than a Hindu undivided family or a company is under the control of one member thereof, and such firm or association has been formed or is being used for the purpose of evading or reducing the liability to agricultural income-tat of any member thereof, he may with the previous approval of the Collector of Agricultural Income-tax, pass an order that the sum payable as agricultural income-tax by the firm or association shall not be determined and thereupon the share of each member in the agricultural income of the firm or association shall be included in his total agricultural income for the purpose of assessment thereon.
Explanation-A member of a firm or association who owns the whole or the major portion of the capital of the firm or association shall not by reason only of that fact be deemed to control the firm or association.
(2) Where the Assistant Agricultural Income-tax Officer or the Agricultural Income-tax Officer is satisfied that a company is under the control of not more than five of its members and that its agricultural income is allowed to accumulate beyond its reasonable needs, existing and contingent, having regard to the maintenance and development of its business, without being distributed to the members, or that a reasonable part of its agricultural income, having regard to the said needs, has not been distributed to its members in such manner as to render the amount distributed liable to be included in their total agricultural income, and that such accumulation or failure to distribute is for the purpose of preventing the imposition of agricultural income-tax upon any of the members in respect of their shares in the agricultural income so accumulated or not distributed, the Assistant Agricultural Income-tax Officer or the Agricultural Income-tax Officer may, with the previous approval of the Collector of Agricultural Income-tax, pass an order that the sum payable as agricultural income-tax by the company shall not be determined, and thereupon the proportionate share of each member in the agricultural income of the company, whether such agricultural income has been distributed to the members or not shall be included in the total agricultural income of such member for the purpose of his assessment thereon: Provided this sub-section shall not apply to any company which is a subsidiary company or in which the public are substantially interested.
Explanation-For the purposes of this sub-section-
(a) a company shall be deemed to be a subsidiary company, if, by reason of the beneficial ownership of shares therein, the control of the company is in the hands of a company not being a company to which the provisions of this sub-section apply or of two or more companies none of which is a company to which those provisions apply;
(b) a company shall be deemed to be a company in which the public are substantially interested if shares of the company (not being shares entitled to a fixed rate of dividend, whether with or without a further right to participate in profits) carrying not less than twenty-five per cent of the voting power have been allotted unconditionally to, or acquired unconditionally by and are at the end of the previous year beneficially held by, the public (not including a company to which the provisions of this sub-section apply) and if any such shares have in the course of such previous year been the subject of dealings in any stock exchange in British India or are, in fact, freely transferable by the holders to other members of the public;
(c) unless the contrary is proved a company shall be deemed to be under the control of any persons where the majority of the voting power or shares is in the hands of those persons or of the relatives or nominees of those persons;
(d) "nominee" means a person who may be required to exercise his voting power on the directions of, or holds shares directly or indirectly on behalf of another person.
(3) The Collector of Agricultural Income-tax shall not give his approval to any order proposed to be passed by the Assistant Agricultural Income tax Officer or the Agricultural Income-tax Officer under this section, until he has given the firm, association or company concerned an opportunity of being heard.
(4) (i) Where any member of a firm or association of individuals makes default in the payment of agricultural income-tax on his share of agricultural income which has been included in his total agricultural income under the provisions of sub section (1), such agricultural income-tax may be recovered from the firm or association, as the case may be.
(ii) Where the proportionate share of any member of a company in the undistributed agricultural income of the company has been included in his total agricultural income under the provisions of sub-section (2), the agricultural income-tax payable in respect thereof shall be recoverable from the company and may be recovered from such member, if there are not sufficient funds in the hands of the company to pay the tax, or if the winding up of the company has commenced.
(iii) Where agricultural income-tax is recoverable from a company, firm or other association under this sub-section a notice of demand shall be served upon it in the prescribed form showing the sum so payable, and such company, firm or association shall be deemed to be assessee in respect of such sum for the purposes of Chapter V.
(5) Where agricultural income-tax has been paid in respect of any undistributed agricultural income of a company under this section and such agricultural income is subsequently distributed in any year, the proportionate share therein of any member of the company shall be excluded in computing his total agricultural income of that year.
(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 if he had not died
(2) Where a person dies before he is served with a notice under sub-section (2) of section 19 or section 30, as the case may be, the Assistant Agricultural Income-tax Officer or the Agricultural Income-tax Officer may serve on his executor, administrator or other legal representative a notice under subsection (2) of section 19 or under section 30 as the case may be and 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 the person dies, without having furnished a return which he has been required to furnish under the provisions of sub-section (2) of section 19 or having furnished a return which the Assistant Agricultural Income-tax Officer or the Agricultural Income-tax Officer has reason to believe to be incorrect or incomplete the Assistant Agricultural Income-tax Officer or the Agricultural Income-tax Officer may make an assessment of the total agricultural income of such person and' determine the tax payable by him on the basis of such assessment and for this purpose may require from the executor, administrator or other legal representative of the deceased person any accounts documents or other evidence which he might under the provision of subsections (2) and (3) of section 20 have required from the deceased person.
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 or the Assistant Agricultural Income-tax Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum so payable.
(1) Any assessee objecting to the amount or rate at which he is assessed under section 20 or denying his liability to be assessed under the Act or objecting to any order against him under section 21 may appeal to the prescribed authority against the assessment or against such order.
(2) Every appeal under this section shall ordinarily be presented within the prescribed period, but the authority before whom the appeal is filed may admit an appeal after the expiration of the prescribed period, if the authority is satisfied that the appellant had sufficient cause for not presenting it within the prescribed period.
(3) The prescribed authority shall fix a day and place for the hearing of the appeal and may from time to time adjourn the hearing and make such further enquiries as he thinks fit.
(4) Every appeal under this section shall be presented in the prescribed form, and shall be verified in the prescribed manner.
(5) In disposing of an appeal, the prescribed authority may. in the case of an order of assessment-
(a) confirm, reduce, enhance or annul the assessment;
(b) set aside the assessment and direct the authority who made the assessment to make a fresh assessment after such further enquiry as may be directed,
or in the case of an order under section 21 confirm, cancel or vary such order: Provided that no enhancement of an assessment shall be made under this section, unless the appellant has had a reasonable opportunity of showing cause against such enhancement.
(1) Any assessee objecting to the enhancement of his assessment by an appellate authority under sub-section (5) of section 25 may appeal to the prescribed authority within the prescribed period against the enhancement.
(2) The prescribed authority shall fix a day and place for the hearing of the appeal and may from time to time adjourn the hearing and make such further enquiries as he thinks fit.
(3) Every appeal under this section shall be presented in the prescribed form and shall be verified in the prescribed manner.
(4) Save as provided in section 28 the orders passed by the prescribed authority on appeals preferred under this section shall be final.
(1) Any person aggrieved by an order passed under section 22 may, within thirty days of the date on which he was served with notice of such order, lodge an appeal in the office of the Collector of Agricultural Income-tax.
(2) The appeal shall be in the prescribed form, and shall be verified in the prescribed manner.
(3) The Collector of Agricultural Income-tax shall refer such appeal with a statement of his own opinion thereon to the Revenue Commissioner for decision; and the Revenue Commissioner shall decide the appeal after hearing the appellant and any person deputed by the Collector of Agricultural Income-tax: Provided that before making a reference to the Revenue Commissioner the Collector of Agricultural Income-tax may, and at the request of the appellant shah, decide the matter in dispute and thereupon the assessee may withdraw his appeal or proceed with it.
(4) The decision of the Revenue Commissioner shall be forwarded to the Collector of Agricultural Income tax who shall transmit it to the Assistant Agricultural Income-tax Officer or the Agricultural Income-tax Officer who passed the original order, and shall also sent copies to each such Assistant Agricultural Income-tax Officer or Agricultural Income-tax Officer who has made any assessment consequent upon such order; and where a decision reverses or modifies the order of the Assistant. Agricultural Income-tax Officer or the Agricultural Income-tax Officer, fresh assessment shall be made in accordance therewith, or such consequential adjustments as may be required shall be made in any assessment already made.
(5) The decision of the Revenue Commissioner shall be final for the purpose of the appeal.
(1) The agricultural income-tax authority immediately superior to the authority disposing of an appeal under section 25 or 26 may, either on his own motion or on application of the aggrieved party, call for the record of such appeal : Provided that nothing in this sub-section shall affect the power of the superior authority to reject the application summarily without calling for the record, if it considers that there is no sufficient ground for interfering : Provided further that no such application shall be rejected summarily unless the applicant or his pleader has had a reasonable opportunity of being heard in support of the same.
(2) On receipt of the record, such superior authority may make such enquiry or cause such enquiries 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 other than an order declining to interfere, without hearing him or giving him a reasonable opportunity of being heard.
(3) Any order passed under sub-section (2) shall be final, subject to any reference made to the High Court under section 29.
(1) If, in the course of any assessment under this Act or any proceeding in connection therewith other than a proceeding under Chapter VI, a question of law arises, the Revenue Commissioner may, either of his own motion or on reference from any agricultural income-tax authority subordinate to him, draw up a statement of the case and refer it with his own opinion thereon to the High Court.
(2) Within sixty days of the date on which he is served with notice of an order under section 25 or 26 or of an order under section 28 enhancing an assessment or otherwise prejudicial to him, or of a decision by the Revenue Commissioner under section 27 the assessee in respect of whom the order or decision was passed may, by application accompanied by a fee of one hundred rupees or such lesser sum as may be prescribed, require the Revenue Commissioner to refer to the High Court any question of law arising out of such order or decision, and the Revenue Commissioner shall, within sixty days of the receipt of such application, draw up a statement of the case and refer it with bis own opinion thereon to the High Court: Provided that a reference shall lie from an order under section 28 only on a question of law arising out of that order itself and not on a question of law arising out of a previous order under section 25 or 26 revised by the order under section 28: Provided further that in the case of a reference from an order under section 25 or 26 in computing the period of sixty days from the date on which the assessee was served with the notice of the said order, the time during which any proceedings under section 28 in respect of the said order were pending, shall be excluded: Provided further that, if, in exercise of his power of revision under section 28, the revisional authority decides the questions or if the Revenue Commissioner rejects the application on the ground that it is time-barred or otherwise incompetent, or if, in exercise of his power under sub-section (3) the Revenue Commissioner refuses to state the case, the assessee may, within thirty days from the date on which he receives notice of the order passed by the revisional authority or by the Revenue Commissioner as the case may be, withdraw his application, and if he does so, the fee paid shall be refunded.
(3) If on any application, being made under sub-section (2), the Revenue Commissioner refuses to state the case on the ground that no question of law arises, the assessee may apply, within six months from the date on which he is served with notice of the refusal, to the High Court and the High Court, if it is not satisfied of the correctness of the decision of the Revenue Commissioner may require the Revenue Commissioner to state the case and to refer it, and, on receipt of any such requisition., the Revenue Commissioner shall state and refer the case accordingly.
(4) If, on any application being made under sub-section (2), the Revenue Commissioner rejects, it on the ground that it is time-barred, the assessee may, within two months from the date on which he is served with notice of the order of the Revenue Commissioner apply to the High Court, and the High Court, if it is not satisfied of the correctness of the decision of the Revenue Commissioner may require the Revenue Commissioner to treat the application as made within the time allowed under sub-section (2).
(5) If the High Court is not satisfied that the statements in a case referred under this section are sufficient to enable it to determine the question raised thereby the Court may refer the case back to the Revenue Commissioner to make such additions thereto or alterations therein as the court may direct in that behalf.
(6) The High Court upon the hearing of any such case shall decide the questions of law raised thereby, and shall deliver its judgment thereon containing the grounds on which such decision is found, and shall send to the Revenue Commissioner a copy of such judgment under the seal of the Court and the signature of the Registrar; and the Revenue Commissioner shall dispose of the case accordingly, or if the case arose on a reference from any agricultural income-tax authority subordinate to it, shall forward a copy of such judgment to such authority who shall dispose of the case conformably to such judgment.
(7) Where a reference is made to the High Court on the application of an assessee, the cost shall be in the discretion of the Court.
(8) Notwithstanding that a reference has been made under this section to the High Court, agricultural income-tax shall be payable in accordance with the assessment made in the case: Provided that, if the amount of an assessment is reduced as a resuh of such reference, the amount overpaid shall be refunded with such interest as the Revenue Commissioner may allow.
(9) Section 5 of the Indian Limitation Act, 1908 (IX of 1908), shall apple to an application to the High Court by an assessee under sub-section (3) or sub-section (4).
If for any reason any agricultural income chargeable to agricultural income-tax has escaped assessment for any financial year, or has been assessed at too low a rate, the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer, as the case may be, may, at any time within three years of the end of that financial year, serve on the person liable to pay agricultural income-tax on such agricultural income 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 19 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.
(1) The authority which passed an order on appeal or revision may, at any time within three years from the date of such order, and the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer may, at any time within three years from the date of any demand made upon an assessee, of his own motion, rectify any mistake apparent from the record of the appeal or assessment, as the case may be, and shall within the like period rectify any such mistake as has been brought to his notice by such assessee : Provided that no such rectification shall, if it has the effect of enhancing the assessment, be made unless the appellate or revising authority or the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer, has given notice to the assessee of his intention so to do and has allowed him a reasonable opportunity of being heard.
(3) Where any such rectification has the effect or reducing the assessment, the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer shall make any refund which may due to such assessee.
(3) Where any such rectification has the effect of enhancing the assessment, the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued under section 24 and the provisions of this Act shall apply accordingly.
In the determination of the amount of agricultural income-tax or of a refund payable under this Act, fractions of an anna less than six pies, shall be disregarded, and fractions of an anna equal to or exceeding six pies shall be regarded as one anna.
(1) The agricultural income-tax authorities shall, for the purposes of this Chapter, have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 (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 any such proceeding before the said authorities under this Chapter shall be deemed to be a "judicial proceeding" within the meaning of sections 193 and 228 (XLV of 1860) and for the purposes of section 196 of the Indian Penal Code.
(2) If any person assessed to agricultural income-tax in respect of agricultural income mentioned in sub-clause (1) of clause (a) of section 2 produces before any agricultural income-tax authority for the purpose of calculating his agricultural income, any rent roll or other similar papers showing the amount of rent received by him, he shall not be entitled to recover, or to institute a suit to recover, rent due to him for any tenure or holding included in such rent roll or other papers at a rate higher than the rate mentioned therein as payable for such tenure or holding, unless the rent shown therein has, since the date of their production, been lawfully enhanced.
(3) Any person who has produced a rent roll referred to in sub-section (2) may, within one year of producing such roll, apply to the agricultural income-tax authority concerned to make any correction therein and that authority may, if he is satisfied that such correction should be made, pass an order correcting such rent roll.
(4) Where the agricultural income-tax authority passes any order under sub-section (3) he may assess under section 30 any income escaping assessment by reason of the original incorrectness of any entry corrected.
The Collector of Agricultural Income-tax the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer may, for the purposes of this Act,-
(1) require any firm or Hindu undivided family to furnish him with a return of the names of members of the firm or of the names of manager or the brothers or their widows and sons of brothers and the sons of the sons of brothers of the family, as the case may be, and of their addresses.
(2) 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.
(1) Any amount specified as payable in a notice of demand under section 24 or an order under section 25, 26, 27 or 28 shall be paid in not more than four equal instalments.
(2) The first of such instalments, shall be paid within one month of the date of the notice of demand or of the order, as the case may be, and the second and subsequent instalments shall be paid at intervals of approximately thirty days on such dates as may be fixed by the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer.
(3) If any such instalment is not paid on the date fixed under sub-section (2) the assessee shall be in default: Provided that when an assessee has presented an appeal under section 25 or 26, the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer may, in his discretion, treat the assessee as not being in default as long as such appeal is undisposed of, and if in any such case the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer considers that the assessee should be held to be in default, he shall refer the matter to the authority to whom the appeal was presented for orders and shall treat the assessee as not being in default until the said authority passes orders to the contrary: Provided further that if no instalments are paid during the pendency of an appeal, all instalments due shall be payable within three months after the date on which such appeal is disposed of.
(1) When an assessee is in default in making a payment of agricultural income-tax, the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer may, in his discretion, direct that, in addition to the amount of the arrears, a sum not exceeding one-eighth of that amount shall be recovered from the assessee by way of penalty.
(2) For the purpose of sub-section (1) the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer may direct the recovery of any sum less than one-eighth of the amount of the arrears and may enhance the sum so directed to be recovered from time to time in the case of a continuing default, so however that the total sum so directed to be recovered shall not exceed one-eighth of the amount of the arrears payable.
(3) When an assessee is in default, the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer may forward to the Collector a certificate under his signature specifying the amount of arrears due from the assessee, and the Collector on receipt of such certificate shall proceed to recover from such assessee the amount specified therein either as an arrear of land revenue or as a public demand payable to the Collector.
(4) (a) When, agricultural income-tax is, under section 8 payable by a trustee, or, under section 9, payable by a mutawali of a Musalman Wakf referred to in section 3 of the Musalman Wakf Validating Act, 1913 (VI of 1913), and such trustee or mutawali is in default, the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer may forward to the Collector a certificate under his signature specifying the amount of arrears due from the assessee, and the Collector on receipt of such certificate shall proceed to recover from such trustee or mutawali the amount specified therein either as an arrear of land revenue or as a public demand: Provided that any land held by such trustee or mutawali as such shall not be attached and sold in execution of such a certificate but such arrears may be realised from the income of the trust property or the Wakf estate by the appointment of a receiver.
(b) The provisions of Order XL of the Code of Civil Procedure, 1908 (V of 1908), shall apply to a proceeding under this sub-section, and the Certificate Officer shall be deemed to be a Civil Court within the meaning of the said Order XL.
(5) No proceeding for the recovery of any sum payable under this Act shall be commenced after the expiration of three years from the latest date fixed for payment in the notice of demand served under section 24, or where the assessee has been treated as not being in default under the proviso to section 35, after the expiration of three years from the date on which the appeal is decided.
Any sum imposed by way of penalty under the provisions of section 21 or section 36 shall be recoverable in the manner provided in this Chapter for the recovery of an arrear of tax.
(1) Where any property of a Hindu undivided family is sold for the realization of arrears of agricultural income-tax, the right, title and interest of all members of such family 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 land held by him wholly or partly for the benefit of other persons and the tax payable by him is in arrear, the land so held by him may be attached and sold for the realisation of such arrears and on such sale, the right, title and interest of such persons in the said land shall pass to the purchaser.
If any person makes a statement in a verification mentioned in section 19 or section 25 or 26 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 (XLV of 1860) of the Indian Penal Code.
(1) A person shall not be proceeded against for an offence under section 39 except at the instance of the Collector of Agricultural Income-tax.
(2) Before instituting proceedings against any person under sub-section (1), the Collector of Agricultural Income-tax shall call upon such person to show cause why proceedings should not be instituted against him.
(3) The Collector of Agricultural Income-tax may stay any such proceeding or compound any such offence.
If any person fails, without reasonable cause or excuse, to furnish in due time any of the returns mentioned in section 19 or section 34, he shall be punishable with fine which may extend to five rupees for every day during which the default continues.
(1) An assessee shall subject to any orders passed under sub-section (2) he assessed at the headquarters of the district in which is situated the land from which the greater part of the agricultural income in respect of which he is assessed is derived.
(2) (a) An assessee may, on receipt of the first notice served on him under sub-section (2) of section 19 apply to the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer by whom such notice is served to be assessed at his usual place of residence or at the place where the accounts relating to his agricultural income are kept if either of such places is situated in the Province of Orissa and such Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer may pass an order that the assessee shall be assessed at the place specified in the application, or refer the matter to the Collector of Agricultural Income-tax, whose decision shall be final
(b) Where an order is passed under clause (a) of sub-section (2), the assessee shall not be entitled to make any further application to change his place of assessment: Provided that the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer may allow the assessee to be assessed at any other place upon such conditions as he thinks fit.
(3) Notwithstanding anything contained in this section every Agricultural Income-tax Officer or Assistant Agricultural Income-tax Officer shall have all the powers conferred by or under this Act on the Agricultural Income-tax Officer or the Assistant Agricultural Income-tax Officer in respect of any agricultural income derived from land situated within the area to which he is appointed.
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 Crown for anything in good faith done or intended to be done under this Act.
In computing the period of limitation prescribed for any appeal under this Act, the day on which the order complained of was made and the time requisite for obtaining a copy of such order shall be excluded.
Any assessee, who is entitled or required to attend before any income-tax authority in connection with any proceeding under this Act, may attend either in person or by any person authorised by him in writing in this behalf
(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 (V of 1908).
(2) Any such notice or requisition may, in the case of a firm or a Hindu undivided family, be addressed to any member of the firm or to the manager, or any adult male member of the family, and, in the case of any other association of individuals, be addressed to the principal officer thereof, and any such notice or requisition so addressed shall be deemed to be a notice or requisition to the firm, family or association of individuals as the case may be.
Every person deducting, retaining or paying any tax in pursuance of this Act in respect of income belonging to another person is hereby indemnified for the deduction, retention or payment thereof.
Nothing in this Act shall be deemed to authorise any agricultural income-tax authority to call for any papers or documents for the purpose of ascertaining agricultural income or for any other purpose under this Act except the papers noted below :-
(a) papers showing the amount of rent which accrued due in the previous year ;
(b) papers showing the actual receipt of agricultural income by an assessee in the previous year;
(c) ledgers showing the actual expenditure incurred for which a deduction or exemption is claimed under this Act;
(d) original vouchers supporting the items of expenditure referred to in clause
(c); and (e) any other paper relevant to the ascertaining of the actual income of an assessee or verification of claims for deduction made by an assessee.
(1) The Provincial Government may, after previous publication, make rules for carrying out the purposes of this Act, and such rules may be made for the whole of the Province or for such part thereof as may be specified.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may-
(a) prescribe the manner in which the net income from land referred to in sub-section (1) of section 7 shall be calculated;
(b) prescribe the manner of service of a notice on a non-resident person under section 17;
(c) prescribe the powers and duties of Agricultural income-tax authorities appointed under sub-section (2) of section 18, the relation of such authorities to each other and the conditions of service of such authorities;
(d) prescribe the date on or before which returns shall be submitted under sub-section (1) of section 19, the form of such returns and the manner in which they shall be verified;
(e) prescribe the period within which returns referred to in sub-section (2) of section 19 shall be submitted, the form of such returns and the manner in which they shall be verified;
(f) prescribe the form of the notice of demand mentioned in section 24;
(g) prescribe the authority to whom appeals may be preferred under sub-section (1) of section 25 or 26 the period, not being less than thirty days, within which such appeals shall be presented, the form of such appeals and the manner in which they shall be verified ;
(h) prescribe the fee mentioned in sub-section (2) of section 29 ;
(i) prescribe the form of the notice of demand mentioned in sub-section (3) of section 31 ;
(j) prescribe the method by which the assessment of agricultural income as determined under section 6 or section 7 shall be made in the case of an assessee who does not reside in the Province of Orissa or of an assessee who resides in the Province of Orissa and is temporarily absent therefrom ;
(k) prescribe the manner in which the tax payable by an assessee who has died since the date of the assessment made on him shall be payable ;
(l) prescribe the manner in which the tax shall be payable where the assessment is made on the agricultural income of a Hindu undivided family and a partition of the property of such family has been effected after the date of such assessment ;
(m) provide for the circumstances in which refunds of the tax paid under this Act shall be made and the manner in which such refunds shall be made ; and
(n) provide for any other matter which by Act has to be or may be prescribed.