R.S.Pathak, J. - (1.) The petitioner was assessed to agricultural income-tax under the U.P. Agricultural Income Tax Act, 1948, for the assessment year 1363 Fasli. A notice of demand dated August 28, 1961 was served upon the petitioner on September 29, 1961, calling upon him to pay the sum of Rs. 12,079.12 as tax. Under the terms of the notice of demand, which were in accordance with the provisions of Section 30 of the Act, the amount specified in the notice was payable in two equal instalments, the first instalment to be paid within one month of the service of the notice and the second within six months from the due date of the first instalment. The petitioner preferred an appeal against the assessment order, which was filed on October 3, 1961. On the same day the petitioner obtained an order from the appellate authority directing that he should be treated as not being in default for not paying the tax assessed. The appeal was dismissed on November 28, 1961, and with it the order that the petitioner should be treated as not being in default was discharged. Then the petitioner, on February 17, 1962, proceeded in revision before the Revision Board. The revision application was dismissed on September 15, 1962. Thereafter a reference application, under Section 24(2) of the Act, was dismissed by the Revision Board. The petitioner then filed a reference application in this Court under Section 24 (4), which is pending. Meanwhile, on April 29, 1962 the petitioner deposited a sum of Rs. 6,039.56 towards the first instalment of tax. On April 16, 1964, as the petitioner had not deposited the balance of tax, the assessing authority imposed a penalty in the sum of Rs. 1,509.89. The total of the amount of lax and penalty, therefore, came to Rs. 7,549.45 and on June 9, 1964, the Collector passed an order directing the recovery of that amount as arrears of land revenue.
(2.) The petitioner objected to the recovery proceedings against him, bur his objections were rejected. He has now filed this petition for certiorari challenging the validity of the recovery proceedings.
(3.) The only contention raised by learned counsel for the petitioner is that the recovery proceedings are barred by limitation. There is force in this contention. Section 30 of the Act provides : "(1) The amount specified in any notice of demand under Section 20 or in any order communicated under Section 23 shall be payable in two equal instalments. (2) The first instalment shall be paid within one month of the service of the notice of demand or communication of the order, as the case may be, and second instalment within six months from the date of the first instalment. (3) If any instalment is not paid within the time allowed under subsection (2) the assessee shall be in default. Provided that when an assessee has presented an appeal under Section 21 the appellate authority, on application, may, on such terms and conditions as he may specify, direct that the assessee shall be treated as not being in default." Then follows Section 31 which provides for the imposition of a penalty upon an assessee who is in default. It empowers the assessing authority to recover a sum not exceeding one quarter of the tax remaining in arrears from the assessee by way of penalty. Section 32 sets out the provisions relating to the recovery of arrears of tax and penalty. It reads : "(1) The Collector may, on the motion of the assessing authority, recover any sum imposed by way of penalty under the provisions of Section 17 or Section 31, or, where an assessee is in default, the amount assessed as agricultural income-tax, as if it were an arrear of land revenue. (2) No proceedings for the recovery of any sum payable under this Act shall be commenced after the expiration of one year from the date on which the last instalment fixed under Section 30 falls due or after the expiration of one year from the date on which any appeal relating to such sum has been disposed of." The period of limitation for commencing proceedings for the recovery of any sum payable under the Act is prescribed under Section 32(2). This provision applies for the purpose of recovering any sum payable, whether the sum is payable on account of arrears of tax or on account of a penalty imposed on the assessee;