M.C. Desai, J. - (1.) This is a case stated at the assessee's instance, by the Revision Board under Sec. 24(2) of the U P. Agricultural Income Tax Act, calling upon this Court to answer the following question: "Whether in making the assessment for the year ending 30th June, 1954 (on the basis of the income of the year ending 30th June, 1953 as the previous year), the applicants were liable to be assessed on multiples of 121/2 times under Sec. 6 as amended by Act 18 of 1954 or only on the multiples of 71/2 times as provided before that amendment - The assessment year here is 1361F. ending on 30-6-1954 and the assessee has to pay tax on its agricultural income for the Fasli year 1360 ending on 30-6-1953. It has elected to compute its income in the manner laid down in Sec. 6(2) (a). A question arose between the assessee and the Department about the multiple. Prior to the amendment of Sec. 6(2) (a) by Act No. XIV of 1953 the income was to be deemed to be an amount equal to the rent multiplied by 71/2. Sec. 7 of Act XIV of 1953 altered the multiple from 71/2 to 121/2. Sec. 1(2) of it laid down that Sec. 7 came into force on 1-7-1953 i.e. on the opening day of 1361F. and that the remaining sections came into force on the date of the enactment i.e. on 13-5-1953. This provision was subject to the proviso that, ". . . . assessments for the agricultural years ending on or before the 30th June, 1953, whether such assessments have or have not been made before the commencement of this Act, shall continue to be made as if -, (a) Section . . . . 6 . . . , of the Principal Act had not been amend ed by this Act . . .". Agricultural years ending on or before 30th June, 1953 mean Fasli year 1360 and previous years. It was contended on behalf of the assessee that this proviso applies in the instant case because the assessment being on the income of Fasli year 1360 is an assessment for 1361F. In other words, it was argued that the words "assessments for the agricultural years" mean the previous years and not the assessment year. There is no substance in this contention at all. "Year" is defined in the Act to mean an agricultural year ending on 30th June and "previous year" to mean "the twelve months ending on the 30th day of June preceding the year for which the assessment is to be made." Sec. 3, which is the charging section, lays down that "Agricultural income tax . . . . . shall be charged for each year . . . . ." The year for which tax is to be charged under Sec. 3 is undoubtedly the assessment year. It is not in dispute that in an assessment year the tax is to be paid on the income of the immediately preceding Fasli year. According to the definition of "previous year" it is the year preceding the year for which the assessment is to be made; it follows that "the year for which the assessment is to be made" means the assessment year. Consequently what is meant by the words "assessments for the agricultural years" in the proviso to Sec. 1(2) of Act XIV of 1953 is assessments for the assessment years and not the previous years. Merely because a tax is assessed on the basis of agricultural income of a previous year it does not become an assessment for the previous year. The income of the previous year only supplies the basis for determining the quantum of the tax but the tax assessed is for the assessment year. The clear meaning of the proviso is that assessments for 1360F, and earlier Faslis only have to be made as if Sec. 6 of the principal Act had not been amended, i.e. as if the multiple to be applied to the rent was 71/2. Here we are concerned with the assessment year 1361 Fasli and, therefore, the proviso has no application. Act No. XIV of 1953 came into effect on the very first day of 1360F, and the assessment for it is to be governed by its provisions. On the very first day of the assessment year, Sec. 6 of the original Act stood amended and the multiple stood altered to the figure of 121/2. The assessee, therefore, had to pay tax on the amount of the rent multiplied by 121/2.
(2.) The Act was further amended by Act XVIII of 1954 but the multiple remained at 121/2. Sec. 1 of Act XVIII of 1954 came into effect on 1-10-1954, i.e. during 1362F. The remaining sections of the Act came into force on 1-7-1954 i.e. on the 1st day of 1362F. The proviso to Sec. 1(2) provides: " . . . the assessments for the agricultural years ending on or before the 30th day of June, 1954 whether such assessments have not been made before the commencement of this Act shall continue to be made as if Secs. . . . 6 . . had not been amended by this Act." Now this Act amended one portion of Sec. 6 of the original Act but not the portion dealing with the multiple. The proviso applies only to assessments for the assessment years 1362 and earlier assessment years and they have to be continued as if Sec. 6 had not been amended by Act XVIII of 1954. There is no scope for considering this proviso because Sec. 6 has not been amended at all, as regards the question of multiple, by Act XVIII of 1954 and it does not matter at all whether they are completed on the basis of Act XVIII of 1954 or on the basis of Act XIV of 1953. It is not easy to understand what the Legislature meant by "whether such assessments have or have not been made before the commencement of this Act shall continue to be made." If the assessments have been made before the commencement of the Act there should not arise any question of their continuing to be made and what the Legislature meant by saying that they would continue to be made is not understood. Any how taking the proviso as it stands we find that the assessment for 1361 Fasli whether made or not made before the commencement of Act No. XVIII of 1954 shall continue to be made on the basis of Sec. 6 as it stood prior to 1-7-1954 i.e. on the basis of the section as it stood after its amendment by Act XIV of 1953.
(3.) The multiple according to Sec. 6 as it stood then was 121/2. The question contains an error it being that the Revision Board has completely ignored the amendment to Sec. 6 by Act XIV of 1953. The relevant part of Sec. 6 e.g. the part relating to the multiple was amended by Act XIV of 1953 and not by Act XVIII of 1954 and not only after the enforcement of Act XVIII of 1954 but earlier also the multiple was 121/2.;