SRI SUDHANSU SHEKHAR SINGH DEO versus THE STATE OF ORISSA AND ANOTHER

Citation: [1961] 1 S.C.R. 779 · Decided: 21-09-1960 · Supreme Court of India · Bench: S.K. DAS · Disposal: Dismissed

Cited by 3 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

1 S.C.R. SUPREME COURT REPORTS 
77(;1 
SRI SUDHANSU SHEKHAR SINGH DEO 
v. 
THE STATE OF ORISSA. AND ANOTHER 
(S. K. DAS, M. HIDAYATULLAH, K. c. DAS GUPTA 
J.C. SHAH a.nd N. RAJAGOPALA AYYANGAR, JJ.) 
Agricultural Income Tax-Ex-Ruler of Indian State-Exemp-
tion from taxation-Claim based on agreement. of merger-Whether 
justiciable-Definition of" person "-Whether excludes "Ruler"-
Orissa Agricultural Income-tax Act, I947 (Orissa z4 of r947), 
ss. z(i), 3-Constitution of India, Arts. z9z, 36z, 363. 
On December 15, 1947, the Ruler of the erstwhile State of 
Sonepur, the appellant, executed a merger agreement whereby 
the Government of India acquired full sovereign rights over the 
territory of the State, but ownership and full enjoyment of pri-
vate properties belonging to the appellant and the personal 
rights, privileges, .dignities etc., enjoyed by him immediately 
before Au3ust 15, 1947, were guaranteed to him under Arts. 4 
and 5. On July 27, 1949, the Gov-ernor-General of India issued 
an order providing that the 'merged Orissa States including the 
State of Sonepur shall be administered in all respects as if they 
formed part of the Province of Orissa. 
The Orissa Agricultural 
Income-tax Act, 1947, had in the meantime been enacted by the 
Legislature of the Province of Orissa and by virtue of an Ordi-
nance promulgated by the Governor of Orissa on Decemoer 30, 
1949, the Act became applicable to the merged Orissa States. 
Section 2(i) of the Act defined a "person " as inclusive of a 
Ruler of an Indian State, but by the Adaptation of Laws Order, 
. 1950, reference to Rulers of Indian States was deleted as from 
January 26, 1950. The appellant contended that he was ·not 
liable to be assessed to tax on agricultural income under the pro-
visions of the Act because (I) as a Ruler of the State of Sone-
pur, he was, before merger of his State, immune from liability 
to taxation in respect of his private property and that his immu-
nity from taxation was guaranteed by Arts. 4 and 5 o[ the agree-
ment of merger; and (2) that by virtue of the amendment of 
s. 2, cl. (i), of the Act, he was not a "person" within the 
meaning of the Act and therefore he was not liable to pay agri-
cultural incom~-tax. 
Held: (1) that the amendment in the definition of "person" 
· in s. 2, cl. (i), of the Act was made ncn \fith the object of exclud-
ing the Rulers of former Indian States from liability to pay tax, 
but only to delete a clause which in view of political changes' 
which had taken place since the Act was enacted had no practi-
cal significance. The appellant could not claim exemption from 
taxation on the ground that he was not a "person", in the 
absence of an. express exemption clause in the Act, 
r960 
September ax. 
780 
SUPREME COURT REPORTS 
(1961] 
1960 
(2) that the privileges guaranteed by Arts. 4 and 5 of the 
agreement of merger were only personal privileges of the appel-
Sudh~nsu 
!ant as an ex-Ruler and that these privileges did not extend to 
)hekhar Singh Deo his private property. 
v. 
Stale of Omsa 
Vishweshwar Rao v. The Stale of Madhya Pradesh, (19.52) 
S.C.R. 1020, followed. 
Shah]. 
(3) that the claim made by the appellant of immunity from 
taxation relying upon the agreement of merger was not justici-
. able. 
CIVIL APPELLATE JURISDICTION: 
Civil Appeals 
Nos. 307 to 309 of 1958. 
Appeals from the judgment and order dated August 
l, 1956, of the Orissa High Court in 0. J. C. Nos. 16, 
19, 137 a.nd 61 of 1954. 
G. B. Aggarwala and P. G. Aggarwala, for the a.ppel-
la.nt (In C. As. Noe. 307 to 309 of 58). . 
N. G. Chatterjee, J. H. Umrigar a.ad T. M. Sen, for 
the respondents (In a.II the a.ppea.Ie). 
1960. September 21. The Judgment of the Court 
wa.e delivered by 
SHAH J.-Thie is a group of three appeals filed 
with certificate of fitneSB under Art. 132 of the Cons-
titution issued by the High Court of J udioa.ture, 
Jrissa.. 
The Legislature of the Province of OriSBa. enacted 
the Orissa. Agricultural Income-tax .Act XXIV of 
1947-hereina.fter referred to a.s the Aot,-provi<ling 
for the levy of income-tax on agricultural income 
derived from la.ode situated in the Province of OriSBa. 
Thie Act wa.e brought into operation from July IO, 
1947. Bye. 3, agricultural income-tax a.t the ra.te or 
ra.tee specified in the schedule wa.e ma.de pa.ya.hie for 
ea.oh financial yea.r on the tota.l income of the previ-
ous yea.r of every person. By the proviso to tha.t 
section, a.gricultura.l income of the Central Gov

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