Pathak, J. - (1.) THIS is a reference made under Section 24(4) of the U.P. Agricultural Income-tax Act, 1948.
(2.) ON the death of the Raja of Tamkohi, the court of wards entered into the management of the estate on behalf of his widow, Rani Jagdishwari Kunwari. During the year 1359 Fasli (corresponding to the year commencing 1st July, 1951, and ending 30th June, 1952) with which we are concerned here, the court of wards was in possession of the estate. Rani Jagdishwari Kunwari died on 15th October, 1950, but the court of wards continued in possession of the estate until 3rd October, 1952, when the estate was released in favour of Maharani Pad am Kunwari, mother of the late Raja, who was appointed as administrator of the estate by the Patna High Court. Maharani Padam Kunwari died on 18th March, 1953, and Bhagwati Prasad Singh was appointed as administrator by the Patna High Court. Subsequently, by an order of that court dated 8th May, 1956, he was removed and Gauri Shanker Sahi was appointed receiver of the estate on 9th May, 1956. The Collector of Deoria took assessment proceedings under the U.P. Agricultural Income-tax Act against the court of wards for the assessment of the agricultural income of the estate for the year 1359 Fasli and made an assessment order on 6th November, 1952. That assessment was set aside in appeal. A second assessment order was made by the Collector on 5th November, 1956, against the court of wards. This assessment was also set aside in appeal and the case was remanded. Thereafter, an assessment under Section 16(3) of the Act was again made by the Collector on 2nd April, 1957, but this time the assessment order was made against the receiver, Gauri Shanker Sahi. The receiver filed an appeal before the Commissioner, Gorakhpur Division, against the assessment order contending that he was not liable to assessment, inasmuch as the agricultural income of the year J359 Fasli had been received by the court of wards and not by him. The plea was rejected and the appeal was dismissed. Gauri Shanker Sahi then applied in revision before the revision board and again objected to the assessment order. The revision was also dismissed. Then he applied to the revision board for a reference to the High Court under Section 24(1) of the U.P. Agricultural Income-tax Act and, that application having been rejected, he moved this court under Section 24(4) of the Act. The court, being of the opinion that a question of law arose in the case, made an order requiring the revision board to state the case and to refer it. Accordingly, the revision board has made this reference. The statement of the case submitted by the revision board does not set out the question of law raised by it. But after hearing the learned counsel for the parties and perusing the record before us, it appears that the following question of law arises in the case : "Whether, on the facts and in the circumstances of the case, the assessment order under Section 16(3), U.P. Agricultural Income-tax Act, in respect of the agricultural income of the year 1359 Fasli could be made against the receiver, Gauri Shanker Sahi ?"
(3.) THE U.P. Agricultural Income-tax Act is, as its long title states, "an Act to provide for the imposition of a tax on agricultural income." Section 3 of the Act charges agricultural income-tax and super-tax for each year at specified rates on the total agricultural income of the previous year of every person. A "person" has been defined by Section 2(11) as : "An individual or association of individuals, owning or holding property for himself or for any other, or partly for his own benefit or for that of another either as owner, trustee, receiver, manager, administrator or executor or in any capacity recognised by law and includes an undivided Hindu family, firm or company but does not include a local authority." It appears, therefore, that the charge has been laid on the total agricultural income of a person whether that person owns or holds property for himself or for any other. Such person may own or hold the property for himself. But he may also own or hold it in a representative capacity for another. He may be a trustee, receiver, manager, administrator or executor or occupy any other representative capacity. But whether he owns or holds the property for himself or for another it is the total agricultural income accruing to him which has been made the subject of charge. Section 3 clearly speaks of "the total agricultural income ..... of every person." That it is the person to whom the income accrues who bears the burden of the liability is borne out by the other provisions of the Act. Section 4 declares that agricultural income-tax shall be payable by a person whose total agricultural income of the previous year exceeds Rs. 4,200. Payment of the tax is contemplated by the person to whom the income can be said to belong. Section 4A provides for the computation of the total agricultural income of an individual in certain cases. Section 10 deals with the agricultural income accruing to or received by an undivided Hindu family. Section 11(1) deals with a case where a common manager, receiver, administrator or the like holds lands from which agricultural income is derived on behalf of persons jointly interested in such land or in the agricultural income derived from it. The common manager, receiver or administrator or a like person is deemed to be the assessee in respect of the agricultural income-tax payable by the persons jointly interested in the land or in the agricultural income and the mode of computing the tax liability is set out in the sub-section. Section 11(2) reads : "Court of Wards, etc.--In the case of agricultural income taxable under this Act which is received by the Court of Wards, the Administrator-General or the Official Trustee, the tax shall be levied upon and recoverable from such Court of Wards, Administrator General or Official Trustee, in the like manner and to the same extent as would be leviable upon and recoverable from any person on whose behalf such agricultural income is received, and all the provisions of this Act shall apply accordingly." ;