K. Lahiri, A.C.J. - (1.)BY this application under Article 226 of the Constitution, the petitioner questions the vires of Rule 11(2)(b)(i) to (ix) of the Assam Agricultural Income-tax Rules, 1939 (for short "the Rules"), as well as the validity of the order of assessment and demand of interest on agricultural income-tax at Rs. 6,093 made by the Agricultural income-tax Officer, Assam, Gauhati (for short "the AITO").
(2.)THE relevant facts are that for the assessment year 1970-71, corresponding to accounting year ending December 31, 1969, the petitioner was finally assessed to pay agricultural income-tax at Rs. 20,628 by the assessment order made by the Agricultural Income-tax Officer on March 14, 1972, who also levied interest of Rs. 6,093, up to March 31, 1972, on the finally assessed agricultural income-tax. THE petitioner had submitted its return of agricultural income on February 24, 1972, which was found correct by the Agricultural Income-tax Officer.
Learned counsel for the petitioner has submitted that the assessment of interest at the sliding rate of 8% to 24% from May 1, 1970, to March 31, 1972, in exercise of the purported power under Rule 11(2)(b)(i) to (ix) is illegal, void and accordingly it should be set aside. Learned counsel submits that the provisions of Rule 11(2)(b)(i) to (ix) and the proviso thereto are illegal, void and ultra vires Section 19 of the Assam Agricultural Income-tax Act, 1939 (for short "the Act"). The second contention is that the levy of interest beyond the date of submission of the return by the petitioner on February 24, 1972, is illegal and void and, accordingly, the impugned orders marked annexures A and B are liable to be quashed. The third contention is that the petitioner is liable to pay simple interest at 6 per cent, per annum from January 1, 1970, to February 28, 1970, and is not liable to pay any interest beyond February 28, 1970, as levied and demanded by the impugned orders.

The first two questions are no longer "res Integra". In New Assam Valley Tea Company Limited v. Agrl. ITO, 1976 ALR 46, a Division Bench of the High Court has held that the provisions contained in Rule 11(2){b)(i) to (ix) and the proviso thereto are ultra vires Section 19 of the Act. It has been ruled that the provisions of Rule 11(2)(b) were beyond the rule-making power of the State Government and accordingly they were declared illegal, void and ultra vires. The provisions of Rule 11(2)(b) read with Section 19 empowered the Agricultural Income-tax Officer to levy interest at the rate of over 6 per cent, to the maximum of 24 per cent. Mr. S.N. Bhuyan, learned Advocate-General, Assam, appearing for the respondents has very fairly submitted that in view of the law laid down by this court in New Assam Valley Tea Co. Ltd., [1976] ALR 46, the Agricultural Income-tax Officer had no jurisdiction vested in him by law to assess interest beyond 6 per cent. and the order of assessment of interest over 6 per cent. is liable to be quashed. We hold, on the authority of New Assam Valley Tea Co. Ltd.'s case, [1976] ALR 46, that the impugned orders marked annexures A and B are invalid to the extent of the levy of interest beyond 6 per cent. purported to have been made by the Agricultural Income-tax Officer acting under void and invalid Rule 11(2)(b)(i) to (ix) of the Rules.

(3.)THE second contention of the petitioner also must be accepted on the authority of New Assam Valley Tea, Co. Ltd., [1976] ALR 46, wherein it has been ruled that interest could be charged only up to "the date of submission of the return" and not beyond that date. As such, the impugned orders marked annexures A and B commanding the petitioner to pay interest beyond February 24, 1972, that is, the date of submission of the return, is also invalid and quashed accordingly.
Now, we turn to the last contention of Mr. Bordoloi, learned counsel for the petitioner. Learned counsel has contended that under Section 19 of the Act read with Rules 11(1) and 11(2)(a) of the Rules, the petitioner is only liable to pay simple interest at the rate of 6 per cent, per annum on the finally assessed agricultural income-tax up to February 28, 1970, and not beyond that date and, as such, the impugned order of assessment of interest beyond February 28, 1970, is liable to be quashed. To appreciate the contention, it is necessary to extract the relevant portion of Section 19(1) of the Act which we do hereunder :

"19. Return of income.--(1) Every person, if his total agricultural income or the total agricultural income in respect of which he is assessable under this Act during the previous year exceeded the limit of the taxable income prescribed in Section 6, shall furnish before the 31st day of December of the relevant financial year, a return of his agricultural income or the agricultural income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed:

Provided that, on an application made in the prescribed manner, the Superintendent of Taxes or Agricultural Income-tax Officer may, in his discretion, extend the date for furnishing the return up to a period not beyond the 28th day of February of the relevant financial year and simple interest at six per cent. per annum shall be payable from the 1st day of January of the relevant financial year to the date of furnishing the return as extended by the Superintendent of Taxes or Agricultural Income-tax Officer on the amount of agricultural income-tax payable on the total agricultural income as finally assessed, reduced by the advance tax, if any, paid.

If the return is not furnished within the 28th February of the relevant financial year as extended by the Superintendent of Taxes or Agricultural Income-tax Officer, simple interest up to a maximum of 24 per cent. per annum as may be prescribed shall be payable from the 1st day of March of the relevant financial year to the date of furnishing the return on the amount of agricultural income-tax payable on the total agricultural income as finally assessed, reduced by the advance tax, if any, paid:

Provided further that no interest under the Sub-section shall be levied if the amount of tax paid within the aforesaid 31st December, is not less than ninety per centum of tax as finally assessed ".