Shah, J. - (1.) By order dated May 14, 1949, the Sub-Divisional Officer; Jaunpur, assessed Raja Yadvendra Dutt Dube - hereinafter called 'the respondent' - under S. 16(3) of the U. P. Agricultural Income-tax Act, 1948 to pay agricultural income-tax for the account period 1335 Fasli (July 1, 1947 to June 30, 1948) on a net income of Rs. 72,769-15-2. Being of the view that a part of the income of the respondent had escaped assessment the Collector of Jaunpur by order dated June 9, 1950, recomputed tax under S. 25 read with S. 16 (4) of the Act for the said account period on a total net income of Rs. 80,859-13-6. In appeal by the respondent the Agricultural Income-tax Commissioner by order dated March 5, 1952, set aside the orders of the Collector and also of the Sub-Divisional Officer and directed that the assessment be reopened by the Collector and fresh assessment of the income for 1355 Fasli be made after giving notice to the respondent. In the view of the Commissioner, assessment made by the Sub-Divisional Officer was without jurisdiction and the order of reassessment by the Collector "being in review and substitution of the order of assessment" want of jurisdiction in the order of assessment attached to the order of re-assessment as well. The respondent then moved the Board of Revision against the order of the Commissioner. The Board agreed with the Commissioner, that the assessment order made by the Sub-Divisional Officer was "illegal and invalid", but in the view of the Board the Commissioner exceeded his authority in setting aside the order of the Sub-Divisional Officer, which was not challenged in appeal before him. However, the Board observed, the illegality and invalidity of the order of assessment having come to their notice, they would take up the matter suo motu in exercise of their revisional jurisdiction and declare the order passed by the Sub-Divisional Officer as illegal and set it aside. Accordingly, in setting aside the order of the Commissioner, they also set aside the order of assessment made by the Sub-Divisional Officer, and directed that "Fresh assessment will be made according to law." The Board then referred under S. 24 (4) of the Act the following question of law to the High Court of Allahabad for opinion:"Whether on the facts and having regard to the provisions of Section 25 of the Act, the Board could on the 15th October, 1952, direct a fresh assessment to be made - The High Court, recorded an answer in the negative. The State of Uttar Pradesh has appealed to this Court.
(2.) The relevant provisions of the Act are briefly these: "Assessing authority" under the Act means a person authorised by the State Government to assess agricultural income-tax; S. 2 (6). By S. 3 charge of agricultural income-tax and super-tax at the rate or rates specified in the Schedule on the total agricultural income of the previous year of every person is imposed. Section 14 sets up Assessing authorities and prescribes their powers. It provides: "(1) For the purposes of this Act, every Collector, and Assistant Collector in charge of a sub-division shall be assessing authority and shall exercise and perform within his revenue jurisdiction such powers and duties as may be prescribed provided that the State Government may appoint any officer as an assessing authority for such area as may be prescribed: (2) In particular and without prejudice to the generality of the provisions of sub-section (1), the following authorities shall be the assessing authorities in the cases mentioned against each namely; (a) Assistant Collector In-charge of sub-divisional:Where the gross agricultural income does not exceed Rs. 1 lakh. (b) Collector:In all cases. (c) Officer appointed under proviso to sub-s. (1):In such cases as may be prescribed." Section 15, insofar as it is material, provides: "(1) The Collector shall * * *give notice, by the publication in the Official Gazette and in such other manner as may be prescribed requiring every person, * * whose total agricultural income during the previous year exceeded the maximum amount which is not chargeable to agricultural income-tax to furnish to such assessing authority and 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 * * his total agricultural income during the previous year: (2) ********** (3) In the case of any person whose total agricultural income is, in the opinion of the assessing authority, such amount as to render such person liable to payment of agricultural income-tax in any 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 form and verified in the prescribed manner setting forth * * his total agricultural income during the previous year." Section 16 sets out the procedure of assessment by the assessing authority, and against the order of assessment by the assessing authority, an appeal lies under S. 21 to the Commissioner. By S. 22 power is conferred upon the Board of Revision either on their own motion or on an application to call for the record of any proceeding under the Act pending before or decided by any authority subordinate to the Board, and after such inquiry as they deem necessary, may pass such orders as they think fit. Section 24 provides for reference of questions of law to the High Court for opinion. Sub-section (2), insofar as it is material, provides: "Within sixty days of the communication of an order under Section 21 or Section 22 the assessee may, by application * * apply to the Board to refer to the High Court any question of law arising out of such order or decision, and the Board shall, within sixty days of the receipt of such application, draw up a statement of the case, and refer it, with their opinion to the High Court: Under sub-s. (4) of S. 24 the High Court is authorised, where the Board has rejected the application under sub-s. (2) or refused to state the case on such application, if the High Court is not satisfied about the correctness of the decision of the Board, to require the Board to state the case and refer it to the High Court. Section 25 authorises the assessing authority to assess or re-assess income which has escaped assessment in any year or has been assessed at too low a rate, after serving a notice on the person liable to pay agricultural income-tax within one year of the end of the year in which the income has escaped assessment. Section 44 confers power upon the State Government to make rules for carrying out the purposes of the Act.
(3.) Under the scheme of the Act, the Collector, of the District is the assessing authority generally in respect of the entire District over which he has revenue jurisdiction, and he is invested with the power to issue a general notice calling upon every person whose income is chargeable to tax, to make a return of his income. The Assistant Collector (who is also called the Sub-Divisional Officer) in charge of a sub-division invested with power as assessing authority within his revenue jurisdiction, where the gross agricultural income of an assessee does not exceed Rs. 1 lakh. Power of the assessing authority under S. 15 (3) to issue a special notice calling for a return may be exercised within the year of assessment, and not thereafter. Power to re-assess under S. 25 is also restricted and the assessing authority may not issue a notice of "escaped assessment" after one year from the end of the year of assessment.;