SUBRAMANIA IYER, J. -
(1.) THESE are references made by the Agricultural Tribunal, Trivandrum, at the instance of the
assessee, Poranchu Varied, Thekkinedath House, North Parur, under s. 113(1), Travancore IT Act,
XXIII of 1121. The following three questions have been referred :
" (1) Whether in view of the sections of the Indian Finance Act of 1950, the present assessment under the Travancore IT Act (XXIII of 1121) is invalid and ultra vires and offends the provisions of the Indian Constitution ?
(2) Whether the assessee has discharged the burden with regard to proving that himself and his brother are holding the properties in their separate and their joint names as tenants -in -common ?
(3) Whether the Government Notification R. O. C. No. 293 of 1949 dt. 28th June, 1949, is not applicable in the case of the assessee - The assessment years in question are 1125 and 1126, the account years being 1124 and 1125.
(2.) ON the first question the contention of learned counsel for the assessee is that s. 13(1) of the Indian Finance Act, XXV of 1950, has rendered assessment to agricultural income -tax for the years
in question impossible because the law which authorised it, namely, Travancore Act XXIII of 1121,
has been repealed by that section. Sec. 13(1) of the Finance Act is as follows : -
"13(1). If immediately before the 1st day of April, 1950, there is in force in any Part B State other than Jammu and Kashmir or Manipur, Tripura or Vindhya Pradesh or in the merged territory of Cooch -Behar any law relating to income -tax or super - tax or tax on profits of business, that law shall cease to have effect except for the purposes of the levy, assessment and collection of income - tax and super -tax in respect of any period not included in the previous year for the purposes of assessment under the Indian IT Act, 1922 (XI of 1922) for the year ending on the 31st day of March, 1951, or for any subsequent year, or, as the case may be, the levy, assessment and collection of the tax on profits of business for any chargeable accounting period ending on or before the 31st day of March, 1949."
(3.) TRAVANCORE Act XXIII of 1121 contains provisions regarding assessment to tax on agricultural income and other income. Entry No. 82 in List No. 1 in the Seventh Schedule to the Constitution
pursuant to which the Finance Act was passed does not authorise the Central legislature to legislate
in respect of agricultural income because the entry reads "Taxes on income other than agricultural
income". Act XXV of 1950 uses the expression "income -tax" as comprising all income except
agricultural income. The expression "any law relating to income -tax, or super -tax or tax on profits
from business" in s. 13 (1) should, therefore, be inferred as confined in its operation to income
other than agricultural income and the sub -section provides that "that law shall cease to have
effect except for the purposes of the levy, assessment and collection of income -tax and super -tax
in respect of any period not included in the previous year for the purposes of assessment." The
reason why it is provided that that law shall cease to have effect is that the Act of the Central
legislature has occupied the field. The occupation of the field is only in respect of income except
agricultural income. Further, s. 13(1) does not repeal any previous statute but only provides that
the law shall cease to have effect. When the legislature intends to repeal a statute it is so expressly
mentioned as is clear from the language of the second sub -clause of s. 13 of the Finance Act which
"If immediately before the 1st day of April, 1950, there is in force in any State other than Jammu and Kashmir a law corresponding to, but other than, an Act referred to sub -s. (1) or (2) of s. II, such law is hereby repealed w.e.f. the said date ; and if immediately before the said date there is in force in the State of Jammu and Kashmir a law corresponding to the Indian Post Office Act, 1898 (VI of 1898), such law is hereby repealed w.e.f. the said date."
On a true interpretation of s. 13, cl. (1) of the Finance Act, in our judgment, the law embodied in
Travancore Act XXIII of 1121 in so far as it relates to agricultural income -tax has not ceased to
have effect. Question No. 1, therefore, has to be answered in the negative. We hold that the
present assessment under Travancore Act XXIII of 1121 is valid and intra vires and does not offend
any provision of the Indian Constitution.
The answer to the third question depends upon that to the second. As regards the second question there is no statement of the case made by the Tribunal. Along with the reference an
affidavit of the assessee dt. 26th Nov., 1951, has been forwarded to this Court. That affidavit was
presented before the Tribunal itself. The list of documents forwarded to this Court contains a note
regarding item No. 4 namely "not sent, which the Dy. Commr. of Agrl. IT and Sales Tax is directed
to be forwarded." That affidavit has not been forwarded to us. In the statement of the case no
mention is made about either of these affidavits which are relied upon by the assessee as having
proved that he is a co -owner. Nor is there a statement of facts which would enable this Court to
answer the second question. We have, therefore, to send the case back to the Tribunal under s.
113(4) of the Travancore Act XXIII of 1121, for submitting to this Court a fresh and sufficient statement of the case in order that the second and third questions may be answered. The second
question does not appear to be properly framed. The attention of the Tribunal is directed to the
necessity for framing the questions in the proper manner before a fresh reference is made to this
Court. The reference will stand answered accordingly. Both the parties will bear their respective