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TMI Blog1964 (11) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... rst and the second instalments which fell due respectively on December 9, 1952, and February 9, 1953. The revenue authorities imposed upon the respondent liability to pay Rs. 4,400 in the aggregate as penalty for default in payment of the two instalments. Pursuant to a certificate issued by the Deputy Commissioner of Sultanpur, proceedings were started against the respondent to recover Rs. 17,674-5-0 being the amount of the second instalment and penalty. The respondent then presented a petition under article 226 of the Constitution before the High Court of Judicature at Allahabad for a writ directing the Collectors of Sultanpur and Allahabad to refrain from recovering or taking any steps for recovery of the amount claimed under the certif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n three grounds : (i) that compensation due to the respondent has already been paid to him by the issue of compensation bonds under section 68 of Act 1 of 1951, and there is no machinery for making adjustment of tax liability against compensation bonds already delivered to the intermediary ; (ii) that under rule 8-A of the Zamindari Abolition and Land Reforms Rules the Collector has the option to adjust liability for tax due against the compensation payable, but he is not obliged at the instance of the intermediary to grant that relief ; and (iii) that under section 6 of Act 1 of 1951, the amount of tax payable for the period after July 1, 1952, is not liable to be set off against compensation payable to the intermediary. The first conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon it for the first time in this court, even though no reliance was placed upon it in the High Court. Nor can reliance be placed upon the plea raised for the first time in the petition for certificate under article 133 of the Constitution. Mr. Agarwala, appearing on behalf of the revenue authorities of the State of U. P., also read out portions of a letter of the Collector, Allahabad, in which that officer has stated that, after the order of the High Court, the respondent was called upon to surrender the amounts withdrawn by him under the compensation bonds, but the respondent failed to do so, and the public debt office was in the circumstances unable, in pursuance of rule 8-A of the Rules framed under the Abolition Act, to allow adjust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of any estate so acquired and due from the intermediary or an arrear on account of tax on agricultural income assessed under the U. P. Agricultural Income-tax Act, 1948, for any period prior to the date of vesting shall continue to be recoverable from such intermediary and may, without prejudice to any other mode of recovery, be realized by deducting the amount from the compensation money payable to such intermediary under Chapter III. " Section 26 authorises the State Government to make rules for the purpose of carrying into effect the provisions of Chapter II of the Act in which section 6 occurs. Chapter III of the Act deals with the assessment of compensation. Section 68, which occurs in Chapter IV, provides that compensation payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t due from an intermediary for any period prior to the date of vesting shall be realized in the manner indicated in clauses (a) and (b). The rule is in terms mandatory and obliges the Collector to realize the tax in the manner provided. The expression " Without prejudice to the right of the State Government to recover dues " with which the rule opens does not transform that duty into an option. The clause merely provides that the obligation imposed upon the Collector of adjusting the dues against compensation will not prejudice the right of the State Government to recover the dues by other means. If, for any reason, the adjustment cannot be made effective and the amount due to the State as tax or as land revenue cannot be recovered by adjus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment and, therefore, tax assessed on the respondent for the period July 1, 1952. to June 30, 1953, does not fall within the terms of section 6(d) of the Act and resort cannot be had to rule 8-A for claiming adjustment of liability to pay tax against the amount of compensation. We are unable to accept this plea. Section 3 of the U.P. Agricultural Income-tax Act emphatically charges the total agricultural income of the previous year to tax. It is true that assessment under the Act is made after the close of the previous year, but the income which is liable to tax is the income of the previous year. The legislature has unambiguously expressed its intention to impose liability to charge agricultural income of the previous year. The tax asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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