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TMI Blog1965 (12) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... esh assessment of the income for 1355 Fasli be made after giving notice to the respondent. In the view of the Commissioner, assessment made by the Sub-Divisional Officer was without jurisdiction, and the order of reassessment by the Collector "being in review and substitution of the order of assessment", want of jurisdiction in the order of assessment attached to the order of reassessment as well. The respondent then moved the Board of Revision against the order of the Commissioner. The Board agreed with the Commissioner that the assessment order made by the Sub-Divisional Officer was "illegal and invalid", but in the view of the Board the Commissioner exceeded his authority in setting aside the order of the Sub-Divisional Officer, which was not challenged in appeal before him. However, the Board observed, the illegality and invalidity of the order of assessment having come to their notice, they would take up the matter suo motu in exercise of their revisional jurisdiction and declare the order passed by the Sub-Divisional Officer as illegal and set it aside. Accordingly, in setting aside the order of the Commissioner, they also set aside the order of assessment made by the Sub-D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evious year.... (3) In the case of any person whose total 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 setting forth ... his total agricultural income during the previous year." Section 16 sets out the procedure of assessment by the assessing authority, and, against the order of assessment by the assessing authority an appeal lies under section 21 to the Commissioner. By section 22 power is conferred upon the Board of Revision either on their own motion or on an application to call for the record of any proceeding under the Act pending before or decided by any authority subordinate to the Board, and after such inquiry as they deem necessary, may pass such orders as they think fit. Section 24 provides for reference of questions of law to the High Court for opinion. Sub-section (2), in so far as it is material, provides: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e terms of the reference. This caution is necessary because learned counsel appearing for the parties have sought to canvass many questions which were never raised before the Board and even before the High Court. The question whether the order passed by the Board setting aside the orders of assessment of the Sub-Divisional Officer and of the Collector and even of the Commissioner is justifiable in law is not referred to us. We are only concerned to deal with the limited question whether the Board had authority on the view expressed by it to make the order directing reassessment, and that question must be decided in the light of the provisions of section 15(3) and section 25 of the Act. It may be assumed that a notice under section 15(1) was issued by the Collector (though there is no reference to such a notice in the record) requiring every person whose income exceeds the maximum amount exempt from tax to submit a return in the Form No. 1(a) prescribed by the Rules. It is common ground however that the respondent filed the return in pursuance of a notice under section 15(3), and that the Sub-Divisional Officer found in the course of the assessment proceedings that the gross agric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities mentioned in sub-section (2) shall be the assessing authorities in the cases "mentioned against each". Reading sub-sections (1) and (2) together there can be no doubt that the Collector is the assessing authority within his revenue jurisdiction with unlimited jurisdiction, and the Assistant Collector in charge of a sub-division is the assessing authority within his revenue jurisdiction with power only in cases in which the gross agricultural income of the assessee does not exceed Rs,1 lakh. There is in the Act no procedure prescribed about ascertainment of the gross agricultural income of an assessee which is determinative of the jurisdiction of the Sub-Divisional Officer, but as in other taxing statutes where the taxing authority is constituted a tribunal of exclusive jurisdiction, the authority has the power, subject to rectification by a superior court, to decide facts on the proof of which his jurisdiction depends. The Sub-Divisional Officer had therefore power to decide whether the gross agricultural income of the respondent did or did not exceed Rs. 1 lakh. The notice under section 15(3) was issued to the respondent by the Sub-Divisional Officer, presumably on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und of want of jurisdiction of the authority making the assessment, the entire proceeding must be deemed to be vacated, and relying upon the return made to the authority who had assessed the income, another authority cannot proceed to assess the income of the assessee. Mere issue of a notice under section 15(1) cannot come to the aid of the Collector in commencing fresh assessment proceeding many years after the date on which that notice was issued, on a return which was not made to him. When after a general notice a special notice was issued unauthorisedly and proceedings were taken pursuant to that special notice, the general notice cannot be relied upon to start fresh proceeding for assessment on the assumption that the return must be deemed to be made to him pursuant to the general notice. The Collector must, before proceeding to assess, issue under section 15(3) a notice when no return was filed pursuant to the notice under section 15(1), and a notice under section 15(3) cannot issue after expiry of the year of assessment to which the notice relates. The third contention also has no substance. The Collector issued a notice under section 25 for reassessing income which had es ..... X X X X Extracts X X X X X X X X Extracts X X X X
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