Chapter III ASSESSMENT AND EXEMPTION

Return of income.-

1. (1) The assessing authority shall on or before the 1st day of April or on such day as may be fixed by the Government, give notice by publication in the Government Gazette, and in such other manner as may be prescribed requiring every person whose agricultural income during the previous year exceeded the maximum amount which is not chargeable to agricultural income tax, to furnish to such assessing authority and within such period, not being less than thirty days as may be specified in the notice, a return in the prescribed form and verified in the prescribed manner : Provided that the assessing authority may in his discretion extend the date for the delivery of the return in the case of any person or class of persons.
2. (2) In the case of any person whose agricultural income is, in the opinion of the assessing authority, such amount as to render such person liable to payment of agricultural income tax in any year, he may serve in that year a notice in the prescribed form requiring such person to furnish within such period, not being less than thirty days as may be specified in the notice, a return in the prescribed form and verified in the prescribed manner : Provided that the assessing authority may in his discretion extend the date for delivery of the return.
3. (3) If any person having furnished a return under sub-section
4. (1) or
5. (2) discovers any omission or wrong statement therein, he may furnish a return or a revised return, as the case may be, at any time before the assessment is made and any return so made shall be deemed to be made in due time under this section.

Assessment.-(1) If the assessing authority is satisfied that a return made under section 7 is correct and complete, he shall assess the agricultural income of the assessee and shall determine the sum payable by him on the basis of such return.

1. (2) If the assessing authority has reason to believe that a return made under section 7 is incorrect or incomplete he shall serve on the person who made the return a notice requiring him on the date to be specified therein either to attend at the office of the assessing authority or to produce or to cause to be produced any evidence in support of the return.
2. (3) On the day specified in the notice issued under sub-section
3. (2) or as soon afterwards as may be, the assessing authority, after examining such evidence as such person may produce and such other evidence as the assessing authority may require on specified points, shall, by an order in writing, assess the agricultural income of the assessee and determine the sum payable by him on such assessment.
4. (4) If any person fails to make a return required by any notice, given under sub-section
5. (1) or subsection
6. (2) of section 7, or having made the return, fails to comply with all the terms of the notice issued under sub-section
7. (2) or to produce any evidence required under sub-section (3), the assessing authority shall make the assessment to the best of his judgment and determine the sum payable by the assessee on the basis of such assessment: Provided that before making such assessment, the assessing authority may allow the assessee such further time as he thinks fit to make the return or comply with the terms of the notice or to produce the evidence.
8. (5) Notwithstanding anything contained in the foregoing sub-section, when the assessee is a firm and the total income of the firm has been assessed under sub-section
9. (1) or sub-section
10. (3) or sub-section (4), as the case may be, then-
    • (a) in the case of a registered firm, the sum payable by the firm itself shall not be determined but the total income of such partner of the firm including therein his share of his agricultural income of the previous year, shall be assessed, and the sum payable by him on the basis of such an assessment shall be determined: Provided that if such share of any partner is a loss, it shall be set off against his other income : Provided further that when any of such partners is a person not resident in the State, his share of the agricultural income of the firm shall be assessed on the firm at the rates which would be applicable if it were assessed on him personally and the sum so determined as payable shall be paid by the firm, and
    • (b) in the case of an unregistered firm, the assessing authority may, instead of determining the sum payable by the firm itself, proceed in the manner laid down in clause
    • (a) if, in his opinion, the aggregate amount of the agricultural income tax payable by the partners under such procedure would be greater than the aggregate amount which would be payable by the firm and partners individually if the firm were assessed as an unregistered firm.

A. Notwithstanding anything contained in sections 7 and 8, the Commissioner may, in such circumstances, under such conditions and for such period as may be prescribed, permit any assessee applying in this behalf, to pay in lieu of the amount of tax payable by him under the provisions of this Act, a lump sum determined in the prescribed manner by way of composition and the sum so compounded shall be payable by assessee.

B. Assessment after partition of a Hindu undivided family.-

1. (1) Where, at the time of making an assessment under section 8, it is claimed by or on behalf of any member of a Hindu undivided family hitherto assessed as undivided that partition has taken place among the members or groups of members of such family, the assessing authority shall make due inquiry into the matter and if a certified copy of a decree of a competent Civil Court for partition of the joint family property or a document purporting to show that there is separate possession and enjoyment of such property is produced, or in the case of a document other than a certified copy of decree, the assessing authority is satisfied that such document has been acted upon by the parties thereof, or if the assessing authority is otherwise satisfied that the Hindu undivided family has ceased to exist as such and the agricultural income is being enjoyed separately by the members or groups of the members of such family in definite shares, he shall in that case record an order to that effect : Provided that no such order shall be recorded until notice of the inquiry has been served on all the members of the family
2. (2) Where such an order has been passed, the assessing authority shall make an assessment of the total agricultural income received by or on behalf of the joint family as such, as if no partition had taken place and each member or group of members shall, in addition to any agricultural income tax for which he or it may be separately liable, be liable for a share of the agricultural income tax on the agricultural income so assessed according to the portion of the joint family property allowed to him or it, and the assessing authority shall make assessment accordingly on the various members and groups of members in accordance with the provisions of section 8 : Provided that all the members or groups of members whose joint family property has been partitioned during the previous year shall be liable jointly and severally for the agricultural income tax assessed on the total agricultural income received by or on behalf of the joint family as such up to the date of partition.
3. (3) Where such an order has not been passed in respect of a Hindu undivided family hitherto assessed as undivided, such family shall be deemed for the purposes of this Act to continue to be a Hindu undivided family.

Penalty for concealment of income.-If an assessing authority in the course of any proceedings before him under this Act is satisfied that the assessee has concealed the particulars of his agricultural income or has deliberately furnished inaccurate particulars of such income and has thereby returned it below its real amount, he may direct that the assessee shall, in addition to the agricultural income tax payable by him, pay by way of penalty a sum not exceeding the amount of agricultural income tax which would have been avoided if the agricultural income so returned by the assessee had been accepted as the correct income : Provided that no such order shall be made, unless the assessee has been heard or has been given reasonable opportunity of being heard :

Notice of demand Notice of demand.-When the assessing authority has determined the sum payable by an assessee under section 8 or when an order has been passed under section 9 for the payment of penalty, the assessing authority shall serve on the assessee a notice of demand in the prescribed form specifying separately the amount of tax and penalty.

Appeal against assessment under this Act.--(1) Any assessee objecting to the amount or rate at which he is assessed under section 8 or denying his liability to be assessed under this Act or objecting to any order against him [under sections 6-A, 8-B and 91 made by the assessing authority may appeal to the appellate authority.

1. (2) Every appeal under this section shall be presented within the prescribed period, but the authority before whom the appeal is filed may admit an appeal after the expiration of the prescribed period if it is satisfied that the appellant had sufficient cause for not presenting it within the prescribed period.
2. (3) Every appeal under this section shall be presented in the prescribed form and shall be verified in the prescribed manner.
3. (4) In disposing an appeal, the appellate authority may-
   • (a) in the case of an order of assessment, confirm, reduce, enhance or annul the assessment or set aside the assessment and direct the assessing authority to make a fresh assessment after such further enquiry as may be directed and
   • (b) in the case of an order under section 9, confirm, cancel or vary such orders : Provided that no enhancement of an assessment shall be made under this section, unless the appellant has had a reasonable opportunity of showing cause against such enhancement.
4. (5) A copy of the order disposing of the appeal should be served by the appellate authority on the appellant.

Revision.--(1) The Commissioner may, on his own motion or on an application, call for the record of any proceeding under this Act pending before or decided by any authority subordinate to him and after such inquiry as he deems necessary may pass such orders as he thinks fit: Provided that no such application shall be entertained in any case where an appeal lay against the order but the applicant failed to prefer it within the time prescribed therefor: Provided further that the Commissioner shall not pass any order prejudicial to an assessee without giving him a reasonable opportunity of being heard.

1. (2) The application under sub-section
2. (1) shall be made within six months from the date of service of the order complained of, but the Commissioner may, on proof of sufficient cause, entertain an application after the period so fixed.

Communication to assessee of order passed under section 11 or 12.--An authority passing any ha1 order under section 11 or section 12 shall communicate such order to the assessee.

Income escaping assessment.--If for any reason any agricultural income chargeable to agricultural income tax has escaped assessment for any year or has been assessed at too low a rate, the assessing authority may, at any time within three years of the end of that year, serve on the person liable to pay agricultural income tax on such agricultural income a notice containing all or any of the requirements which may be included in a notice under section 7 and may, upon service of such notice, proceed to assess or re-assess such income, and the provisions of this Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that section :

Rectification of mistake Rectification of mistake.--(1) Any authority which passed an order of assessment or any order in appeal or revision may, on his own motion, or on an application by the assessee, at any time within three years from the date of such order, rectify any mistake apparent on the face of the record of the assessment, appeal or revision, as the case may be : Provided that no such rectification shall, if it has the effect of enhancing the assessment, be made unless the assessee has been given reasonable opportunity of being heard.

1. (2) Where any such rectification has the effect of reducing the assessment, the assessing authority shall refund the excess amount to the assessee.

Power to take evidence on oath.--The assessing authority, the appellate authority and the Commissioner shall, for the purposes of this chapter, have the same powers as are vested in a Court under the Code of Civil Procedure, Svt. 1977 when trying a suit in respect of the following matters, namely :-

1. (a) enforcing attendance of any person and examining him on oath or affirmation,
2. (b) compelling the production of any document, and
3. (c) issuing commission for the examination of, any witness.