WARREN TEA LTD. AND ANOTHER Vs. STATE OF ASSAM AND OTHERS

JUDGEMENT

(1.) IN this application under article 226 of the Constitution of India. The petitioner, who is an assessee under the Assam Agricultural Income Tax Act, 1939, has challenged an order of the Agricultural Income Tax Officer made on June 10, 1986, refusing to change the "previous agricultural year".

(2.) SECTION 2(d) of the Assam Agricultural Income Tax Act, 1939, runs as follows :

(3.) THE question which arises for consideration is under what circumstances consent is to be given or refused. On a reading of the proviso to section 2(d), it appears that the proviso does not lay down explicit guidelines for the exercise of power, that is to say, there is no guideline under what circumstances consent is to be given or refused. Where the provision which confers discretion on the executive authority does not lay down guidelines for the exercise of that power, there is every possibility of causing real and substantive discrimination by arbitrary exercise of power and, therefore, such provision is violative of article 14. However, it is well -settle that guidelines need not be found in the provision itself conferring the discretionary power upon the executive authority. The same may be collected from the framework of the provision and the purpose for which it is enacted (see State of Mysore v. M. L. Nagade and Gadag : AIR 1983 SC 762.