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TMI Blog1968 (11) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 1359 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me.........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.-I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in his own name in respect of that income. Any such assessment shall be deemed to be made upon him in his representative capacity only. Sub-sections (1) and (2) of section 11 of the U.P. Agricultural Income-tax Act and sections 160 and 161 of the Income-tax Act, 1961, are merely enabling sections. They enable the revenue to make an assessment on the representative assessee instead of a direct assessment on the person beneficially entitled to the income. An option is given to the revenue in the matter, whether to assess directly the person who is the beneficial owner of the income or instead to assess the representative assessee who initially receives the income. The scheme expressed in the U.P. Agricultural Income-tax Act, as in the Indian Income-tax Act, 1922, and the Income-tax Act, 1961, provides for charging the tax in the hands of the person who is in actual receipt and control of the income. Speaking with reference to similar provisions in the Income Tax Acts, of the United Kingdom, Viscount Cave pointed out in Williams v. Singer : " The object of the Acts is to secure for the State a proportion of the profits chargeable, and this end is attained (speaking generally) by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from assessment of agricultural income-tax in certain cases of sums received by the person who otherwise would be liable to pay tax in respect thereof. It clearly contemplates that it is the person who receives the income who is liable to pay the tax and not the person who comes on to the estate in some subsequent year. The position is further confirmed upon an examination of sections 15 and 16 of the Act which provide for the return of income and assessment. Under section 15(1), the Collector is empowered to publish a notice requiring every person whose total agricultural income during the previous year exceeds the maximum amount not chargeable to tax, to furnish a return of his total agricultural income during the previous year. Section 15(3) provides for individual notice to persons whose total agricultural income is such as to render them liable to payment of tax. Section 15(3B) requires the assessing authority to send, along with the individual notice, a statement showing a provisional estimate of the agricultural income which in his opinion " accrued to the Person during the Previous year ". Section 16 provides for assessment of the income and determination of the sum payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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