HARRIES, J. - (1.) THIS is a reference made by the Assam Agricultural IT Board under S. 28(5) of the Assam Agricultural IT Act, 1939. The reference is made in respect of the assessment to agricultural income-tax of the assessee, His Highness the Maharaja of Tripura, for the years 1939-40, 1940-41 and 1941-42.
(2.) THE facts giving rise to this reference can be shortly stated as follows : The Assam Agricultural IT Act (Act IX of 1939) was passed in the month of August, 1939, and was to have effect from the month of April of that year. A notice under S. 19(1) of the Act was served upon a pleader who described himself as Am-Muktear of His Highness the Maharaja of Tripura calling upon him to make a return of the agricultural income of His Highness for the year 1939-40. The Am-Muktear filed an objection alleging that there was no necessity for a return to be made as the property of the Maharaja or of the Tripura State in Assam was part of the State property and, therefore, not assessable to the Assam agricultural income-tax. The property in question was a large zemindary known as the Chakla Roshanbad which was situate within the Province of Assam. It appears that the ITO accepted the contention of the Am- Muktear and no assessment was made. By an order dt. 27th May, 1941, the Agricultural ITO, however, reopened the matter under S. 30 of the Act and issued a notice on the asst. manager of the Tripura Raj estate calling upon him to make a return of the income for the year 1939-40. The Am- Muktear of the Tripura State filed a return of the agricultural income under protest and eventually the Agricultural IIO found the agricultural income to be Rs. 66,830 and assessed the tax at Rs. 4,639-1-0. The income was held to be that of the Tripura State which was assessed as an association of individuals.
(3.) NO steps were taken for some time to make an assessment for the year 1940-41. However, on 27th May, 1941, notice under S. 30 of the Assam Act was served on the asst. manager of the Tripura State alleging that the income for that year had escaped assessment and calling upon him to file a return. A return was filed under protest and eventually the agricultural income was assessed at Rs. 66,541 and the tax at Rs. 9,233. Again the assessee was stated to be an association of individuals.;