The ASSAM AGRICULTURAL INCOME TAX ACT, 1939

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ASSAM ACT IX oF 1939. 
THE ASSAM AGR I CULTURA L IN COM E­
TAX ACT, 1939 
[Passed by the Assam Legislature] 
[Received the assent oC the Governor on the 18th 
August 1939.] 
[Published in the Assam Gazette of 23rd August 
1939.] 
An Act to provide for the imposition of a tax on agricul­
tural income 
WHEREAS it is expedient to impose a tax on 
agricultural income arising from lands s itu ated 
in the Province of Assam ; 
It is hereby enact ed as follows :-
CHAPTE R I 
PRELIMINAR Y 
Short title. I. (1) This Act may be called the Assam Agri· 
cultural Inco me-Tax Act, 1939. 
De6nitiom. 
(2) I t shall take effect from the 1st pf April, 
1939. 
2. In this Act, unless there is anything 
repugnant in the subject or context -
(a) "agricultural income" means-
(1) Any rent or revenue derived from 
land which is used for agricultu ra l 
purposes, and is either assessed to 
land revenue in Assam or subject 
to a local rate assessed and collect­
ed by officers of the Crown as 
such . 
t2) Any income derived from such land 
by-
(t} agriculture, or 
(i1)the performance by a cultivator 
or receiver of rent-in-kin d of an y 
process ordinarily employed by 
a cultivator or receiver of r ent­
in-kind to render the produce 
raised or received by him fit to 
be taken to market, or 
(iii) the sale by a cultivator or receiver 
of rent- in-kind of the produce 
raised or received by him, i n 
respect of which no process has 
Price : India annas 3. ] [ Pri~e : English 4d. 
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been performed other than a 
process of the nature described 
in sub-clause (ii) ; 
Explanation. -Agricultural income derived 
from such land by the <!u!tivation of tea means 
that portion of the income derived from the 
cultivation, manufacture and sale of tea as is 
defined to be agricultural income for the purposes 
of the enactments relating to Indian Income-tax. 
(b) "agricultural income-tax" means the 
tax payable under this Act ; 
(c) "Agricultural Income-tax Officer" 
means a person appointed to be an 
Assam Agricultural I ncome-tax 
Officer under sub-section (2) of sec­
tion 18; 
(d) "previous agricultural year" means the 
twelve months ending the 31st of 
March preceding the year for which 
the assessment is to be made, or, if 
the accounts of the assessee have 
been made up to a date within the 
said twelve months in respect of a 
year ending on any date other than 
the said 31st day of March , then 
at the option of the assessee the 
year ending on the day to which 
his accounts have so been made up ; 
Provided that, if this option has once been 
exercised by the assessee, it shall 
not again be exercised so as to 
vary the meaning of the expression 
"agricultural year" as then appli­
cable to such assessee except with 
the consent of the Agricultura l 
Incom~tax Officer and upon such 
<:onditions as he may thirik fit. 
(e) "assessee" means a person by whom 
agricultura l income-tax is payable ; 
(f) "Assistant Commissioner of Agricul­
tural Income-tax" means a person 
appointed to be an Assam Assistant 
Commissioner of Agricultura l Income­
tax under sub-section (2) of section 
18; 
(g) "Board" means the Assam Board of 
Agricultural Income-tax appointed 
under sub-section (2) of section 18 ; 
(h) "Commissioner of Agricultural In­
come-tax" means a person appointed 
to be an Assam Commissioner of 
Agricultural I ncome-tax under sub­
section (2) of section 18 ; 
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{i) "Company" means a company as 
defined in the Indian Companies 
Act, 1913, or formed in pursuance vrr 0 f1913, 
of an Act of Parliament, or of Royal 
Charter, or Letters Patent, or of 
an Act of the Legislature of a 
British possession, and includes any 
foreign association carrying on business 
in British India, whether incorporated 
or not, and whether its principal place 
of business is situated in British India 
or not, which the Board may, by 
general or special order, dedare to 
be a Company for the purposes of 
this Act; 
( j) "financial year" means the year 
beginning on the first day of April 
and ending on the thirty-first day of 
March next following ; 
(k) "firm" has the same mean.ing as in 
the Indian Partnership Act, 1932 ; IX. of 1932., 
(l) "landlord" has the same meaning as 
Assam (Temporarily-settled Dis- Assam Act 
in the tri cts) Tenancy Act, 1935; III of 1935. 
Sylhet Tenancy Act, 1936; x~r;9t6~t 
Goalpara Tenancy Act, 1929 ; Assam Act 
(m) "person" means any individual, or 
association of individuals, owning or 
holding prop erty for himself or for any 
other or others or partly for his own 
benefit and partly for that of any other 
or others, either as owner, trustee, re­
ceiver, common manager, administra­
tor or executor or in any capacity 
recognised by law, and includes an 
undivided or joint Hindu Family , 
firm or company ; 
(n) "prescribed" means prescribed by 
Rules made under this Act ; 
( o) "principal officer" used with reference 
to any company or association 
means:-
(i) the secretary, treasurer~ manage r 
or agent of the company or asso­
ciation, or 
(ii) any person connected with the 
company or association upon 
whom the Agricultural Income­
tax Officer has served a notice 
I of 1929. 
Charge of 
agricultural 
income-tax. 
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of his intention of treating him 
as principal officer thereof ; 
and 
«total agricultural income" means 
t.he aggregate of amounts of agricul­
tural income of the different classes 
specified in sections 7 and 8 as deter ­
mined respectively in the manner 
laid down in the said sections. 
CHAPTER II 
CHARGE OF AGRICULTURAL INCOME-TAX. 
3. Agricultural income-tax at the rate or 
rates specified in the annual Assam Finance 
Acts subject to the provisions of section 6 shall be 
charged for each financial year in accordance 
with, and subject to, the provisions of this Act 
on the total agricultural income of the previous 
year of every individual, Hindu undivided or 
joint family, company, firm and olher association 
of individuals. 
Ezemptionse 4. Except as provided elsewhere in this Act 
agricullural income-tax shall not be assessed on, 
and be payable by, an assessee in respect of-
(i) Any income which he receives as a 
member of a Hindu joint or undivi­
ded family where the agricultural 
income of such family has been 
assessed to agricultural income-tax 
under this Act, 
(ii) Any sum which he receives by way of 
dividend as a share-holder in any 
company where the agricultural 
income of the company has been 
assessed to agricultural income-tax 
under this Act, 
(iii) Such an amount of the agricu ltura l 
income of any firm whiclh has been 
assessed to agricultural income-tax 
under this Act as is proportionate to 
his share in the firm at the time of 
such assessment and is received by 
him, 
(iu) Any sum which he receives as his 
share of the agricultural income of 
an association of individuals other 
than a Hindu joint or undivided 
family, company or firm where such 
agricultural income has been assessed 
to agricultural income-tax under this 
Act, 
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(o) Any sum which he receives after the 
tax in respect thereof has been assess­
ed under sections 9 to 14 and 
realised . 
Application 5. Save as hereinafter provided, this Act shall 
ofthe Act. apply to all agricultural income derived fi·om 
land situated in the Province of Assam. 
Limit of tax- 6. Agricultural income-ta'< shall be payable by 
able income. persons whose total agricultural income of the 
previous agricultural year exceeds Rs .3,000 at 
such rates as may be laid down from year to year 
in the ~nnual Assam Finance Acts : 
Provided that such rates shall not be greater 
than the Central Government income-tax rates 
from time to time and that they shall not be 
subject to, or include, any surcharge . 
Explanation.-!ncome-tax for the purposes of 
this Act does not include super-tax. 
Determina- 7. The agricultural income mentioned in sub­
tion of ag.ri- clause (1) of clause (a) of section 2 shall be 
cultural m- deemed to be the sum realised in the previou~ 
come. agricultural year on account of agricultural in ­
come mentioned in the said sub-clause (1), after 
making the following deductions:-
(a) the sum actually paid in the previous 
agricultural year as revenue to the 
Crown or as rent to a superior land ­
lord in respect of the land from which 
such agricultural income is derived ; 
(b) the sum actually paid in the previous 
agricultural year in respect of such 
land as any local rate collected unde r 
any enactment in force in Assam ; 
(c) a sum equal to IS per cent. of the 
total amount of the rent which 
accrued due in the previous agl·icul­
tw·al year, in respect of the charges 
for collecting the same ; 
(d) 
(e) 
any rate paid under the Village Chow - Bengal Act 
kidari Act, 1870, in respect of any VI of 1870. 
building used by the assessee as an 
office for the collection of the rents 
due in respect of the land from which 
such agricultural income is derived ; 
any expenses incurred on the mainte ­
nance of any irrigation or protective 
work constructed for the benefit of the 
land from which such agricultural in­
come is derived ; 
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r ~ I?etermina: 8. (1) The agricultural income mentioned in 
tio1n of 1a~•- sub-clause (2) of clause (a) of section 2 shall be 
cu tura m- d th f h · come men- assesse on e net amount o sue 1ncome 
tioned in determined in the prescribed manner. 
clause .(a)(2) (2) Rules prescribing the manner of deter -
of secuon 2. . . h f · 1 1 · mmmg t e net amounts o agncu tura tncome 
for the purpose of this clause shall provide 
that the following deductions shall be made from 
the gross amounts of such income, namely :-
(a) the sum actually paid in the previous 
agricultural year as revenue to the 
Crown or as rent to a superior land­
lord in respect of the land from which 
such agricultural income is derived ; 
(b) the sum actually paid in the previou s 
agricultural year in respect of such 
land as any local rate collected under 
any enactment in force in Assam; 
(c) any tate paid under the Village Chowki-
dari Act, 1870, in respect of any Bengal Act 
building used for the purposes of the VI of l870. 
cultivation of the land from which 
such agricultural income is der ived ; 
(d) the expenses of cultivating the crop 
from which such agricultural income 
is derived and of transporting such 
crop to market, including the main­
tenance of agricultural implements 
and cattle required for the purpose of 
such cultivation and for transporting 
the crop to market ; 
(e) any tax, or rate paid under any enact ­
ment in force in Assam on the culti­
vation or sale of the crop from which 
such agricultural income is derived ; 
(f)(i) any expenses incurred on the main ­
tenance of any irrigation or protective 
works constructed for the benefit of 
the land from which such agricultural 
income is derived ; 
( ii) any expenses incurred on the main ­
tenance of any capital asset, if such 
maintenance is deemed to be required 
for the purpose of deriving such agri ­
cultural income from such land ; 
(iii) interest actually paid on any amount 
borrowed and actually spent on any 
capita l expenditure incurred for the 
benefit of the land from which such 
agricultural income is derived~ or for 
the yurpose of deriving such agricul­
tura income from such land ; 
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J?etermina: 8. (1) The agricultural income mentioned in 
tio1n of 1a~•- sub-clause (2) of clause (a) of section 2 shall be 
cu tura m- d h f h · come men- assesse on t e net amount o sue 1ncome 
tioned in determined in the prescribed manner. 
clause .(a)(2) (2) Rules prescribing the manner of deter -of secuon 2. • . h f . 1 l • mmmg t e net amounts o agncu tura tncome 
for the purpose of this clause shall provide 
that the following deductions shall be made from 
the gross amounts of such income, namely :-
(a) the sum actually paid in the previous 
agricultural year as revenue to the 
Crown or as rent to a superior land­
lord in respect of the land from which 
such agricultural income is derived ; 
(b) the sum actually paid in the previous 
agricultural year in respect of such 
land as any local rate collected under 
any enactment in force in Assam ; 
(c) any rate paid under the Village Chowki-
dari Act, 1870, in respect of any Bengal Act 
buildin g used for the purposes of the VI of 1870. 
cultivation of the land from which 
such agricultural income is derived ; 
(d) the expenses of cultivating the crop 
from which such agricultural incom e 
is derived and of transporting such 
crop to market, including the main­
tenance of agricultural implements 
and cattle required for the purpose of 
such cultivation and for transporting 
the crop to market ; 
(e) any tax, or rate paid under any enact­
ment in force in Assam on the culti­
vation or sale of the crop from which 
such agricultural income is derived ; 
(f)(i) any expenses incurred on the main ­
tenance of any irrigation or protective 
works constructed for the benefit of 
the land from which such agricultural 
income is derived ; 
(ii) any expenses incurred on the main ­
tenance of any capital asset, if such 
maintenance is deemed to be required 
for the purpose of deriving such agri­
cultural income from such land ; 
(iii) interest actually paid on any amount 
borrowed and actually spent on any 
capital expenditure incurred for the 
benefit of the land from which such 
agricultural income is derived, or for 
the purpose of deriving such agricul ­
tural income from such land i 
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(iv) {a) Depreciation of any asset required for 
the benefit of the land from which 
such agricultUral income is derived 
or for the purpose of deriving such 
agricultural income from such land, 
subject to the provisions of this Act 
in the manner allowed and at the 
rates prescribed for the purposes of 
Indian Income-tax or in default of 
such prescription as prescribed by 
rules under section 50 of this Act ; 
(v) 
(b) In respect of any such machinery or 
plant which in consequence of its 
having become obsolete has been sold 
or discarded the difference between 
the written down value as defined for 
the purposes of Indian Income-tax 
and the amount for which the 
machinery or plant is actually sold or 
its scrap value ; 
Any sum paid in order to effect an in-
surance against loss or damage of 
crop or property from which agricul­
tural income is derived : provided 
that notwithstanding anything con­
tained in this Act in the case of an 
assessee in whose case deduction on 
the account is made in assessment 
any amount received by him from 
the insurance company in any year 
shall be deemed to be for the purpose 
of this Act agricultural income after 
deducting the share or portion thereof 
assessed to the Indian Income-tax ; 
(vi) nny interest paid on any mortgage or 
other capital charge incurred for the 
purpose of acquiring the property 
from which such agricultural income 
is derived or for the pw·poses of culti­
vation of the property ; 
(vii) Any expenditure (not being in the nature 
of capital expenditure) laid out or 
expended wholly and exclusively for 
the purpose of earning or derivi ng the 
agricultural income ; 
(g) such other deductions as may be pr<'s­
cribed by rules made under sec­
tion 50 of this Act : 
Provided always that no deduction shall be 
made under this clause, if it has 
already been made under section 7 
of this Act or in the assessment under 
the Indian Income-tax Act ; 
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L - - Provided further that in cases of agricul-
tural income from cultivation and 
manufacture of tea the agricultural 
income for the purposes of this Act 
shall be d1...'Cmed to be that portion 
of the income from cultivation, manu ­
facture and sale which is agricultural 
income within the meaning of the 
Indian Income-tax Act and shall be XI of 1922. 
asceJ·tained by computing the income 
from the cultivation, manufacture and 
sale of tea as computed for Indian 
Income-tax from which shall be 
deducted any allowances by this Act 
authorised in so far as the same shall 
not have been allowed in the compu -
tation for the Indian Income-tax Act. 
Exemption of 9. (1) Any agricultural income derived from 
ch~r!table or property held under a trust or other legal obliga -
~h~Jous tion wlJOJly or partly for religious or charitable 
ru · purposes shall, to the extent it is applied or 
finally set apart for the aforesaid purposes, not 
be liable to income-tax under this Act. 
(2) In this section, purposes of a charitable 
nature include relief of the poor, education, 
medical relief, and advancement of any other 
object of general public utility. 
Ex~lusion of 10. All agricultural income of Muslim Trusts 
~~!tur~~ referred to in section 3 of the Musalman Wakf Act Vl of 
certain Validating Act, 1913, created before the com- 1913. 
wakfs mcncement of this Act, shall be excluded from 
the operation of this Act : 
Provided that the share of a beneficiary under 
a trust under the aforesaid Act, of the description 
commonly known as Wakf~alal-aulad shall not 
be exempted and the basis of the taxation shall 
be the share of each beneficiary : 
Provided further that if a beneficiary's income 
is assessable under the above mentioned proviso 
the Agricultural Income-tax Officer may require 
the Mutawali to deduct the amount of the tax 
from the payment to be made to the benefic iary 
and pay the same to the Agricu ltural Income -tax 
Officer. On such requisition the Mutawali shall 
be liable to pay the same. 
A~~ent of 11. The total agricultural income of a Hindu 
~ivid~d u ~; undivided or joint family shall be treated as the 
joint family. income of one indiv1dual and assessed as such : 
Provided that if a Hindu undivided or joint 
family consists of brothers only, or of a brother or 
10 
brothers and the son or sons of a brother or 
brothers, the total agricultural income of the 
family shall be assessed-
(a) at the rate applicable to the share of 
a brother if such share exceeds 
Rs.S,OOO; 
(b) at 4 pies in the rupee, if the share of a 
brother is Rs.5,000 or less. 
Explanation.--For the purposes of this section,-
(1) the expression "share of a brother" 
in the case of a joint family governed 
by Mitakshara law means the portion 
of the total agricultural income of a 
Hindu undivided or joint family 
which would have been allotted 
to a brother, if a partition of the 
property of such fami ly had been 
effected according to the ordinary 
rules of Hindu Law applicable to 
such family, on the day before the 
assessment is made ; and 
(2) "son" includes a son's son. 
Assessment of 12. (1) Save as provided in sections 10, 13 and 
~dd 0 £.' l~d 14 if a person holds land from which agricultural 
benelit or of e income is derived partly for his own benefit and 
several per- partly for the benefit of beneficiaries or wholly 
sons. for the benefit of a beneficiary or beneficiaries, 
agricultural income-tax shall be assessed on the 
total agricultural income derived from such land 
at the rate which would be applicable if such 
person had held the land exclusively for his own 
benefit and agricultural income-tax so payal>le 
shall be assessed on the person holding such land, 
and he shall be liable to pay the same. 
(2) Any person holding such land shall be 
entitled before paying to any beneficiary the 
amount of agricultural income which such bene­
ficiary is entitled to receive from the agricultural 
income derived from such land, to deduct the 
amount, of agricultural income-tax at the rate 
at which the agri cultural income is or will be 
assessed under sub-section (1). 
Explanation.-In this section r•beneficiary" 
means a person entitled to a portion of the 
agricultural income derived from the land. 
Assessment 13. Where any person holds land, from which 
of tax on agricultural income is derived, as a common 
com m o n manager appointed under any law for the time 
m~nagert, re- being in force or under any agreement or as 
ceaver, e c. . d · · h lik b 1 recelVer, a rmrustrator or t e e on e talf of 
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persons jointly interested in such land or in thr 
agricultural income derived therefrom, the aggre ­
gate of sums payab le as agricultura l income-ta .. x 
by each person on the agricultural income 
derived from such land and received or receiva­
ble by him shall be assessed on such common 
manager, receiver, administrator or the like and 
he shall be deemed to be the assessee in respect 
of the agricultural income-tax so payable by 
each such person and shall be liable to pay the 
same. 
Court of 14. In the case of agricultural income 
Wards, etc. taxable under this Act, which is received by 
the Court of Wards, the Administrator General, 
or Official Trustee the tax shall be levied upon 
and be recoverable from such Court of Wards, 
Administrator General or Official Trustee in the 
like manner and to the same amount as it 
would be leviable upon and recoverable from any 
person on whose behalf such agricultural income 
is received, and all the provisions of this Act 
shall apply accordingly. 
~emptio~ 15. (1) (a) Agricultural income-ta.x shall not 
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case of life be payable by an assessee in respect of any sum Insurances. 
paid by him out of his total agricultural income 
to clfcct an insurance on his own life or on the 
life of his wife or his child or children, or in 
respect of a contract for a deferred annuity on 
his own life or on the life of his wife, or as a 
contribution to any provident fund to which the 
Provident Funds Act, 1925, applies; XIX of i 92 ~. 
Provided that agricultural income-ta.x shall be 
payable on the remainder of the total agricul­
tural income of such assessee at the rate 
which would have been applicable if such deduc ­
tion had not been made. 
(b) Nothing in this sub·section shall be 
deemed to entitle an assessee, who is assessed to 
income-tax under the Indi an Income-tax Act, 
as amended up-to-date, to claim a deduction in 
respect of any sum paid by him, as mentioned in 
clause (a), if such sum was exempted under sec­
tion 15 of the said Act. 
(2) Where the assessee is a Hindu undivided 
or joint family there shall be exempted under sub­
section (I) any sum paid to effect an insurance 
on the life of any male member of the family. 
(3) The ag~regate of any sums exempted 
under this sectton shall not exceed one-sixth of 
the total agricultural income of the assessee. 
XI ofl92:1. 
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Carrying for- 16. Where any assessee susta ins a loss of 
~:d of 0~ profits or gains in any year being a previous year 
fits or g!~. not earlier than the previous year for the assess-
ment for the year ending on the 31st day of 
March, 1940, the loss shall be carried forward to 
the following year and set off against the profits 
or gains if any of the assessee from agricultural 
income for that year and if it cannot be wholly 
so set off the amount of loss not so set ofT shall be 
carried forward to the following year and so on 
but no loss shall be carried forward for more than 
six years. 
Certificate 17. The Principal officer of every company 
in respect of shall, at the time of distribution of dividends, 
pay.ment of fUJ·nish to every person receiving a dividend a agncu ltura l . . income-tax cert11icatc to the effect that the company has pa1d 
by Compa- or will pay agricultura l income-tax on the profits 
nies. which are being distributed, and specifying such 
other particular as may be prescxibed. 
CHAPTER III 
INCOME -TAX AUTHORITiES 
i~cth:rrJ=: 18. (1) There shall be the following classes 
of Income-tax authorities for the purposes of 
this Act, namely :-
(a) The Assam Board of Agricultut·al 
Income-tax, 
(b) The Assam Commissioner of Agricul­
tural Income- tax, 
(c) The Assam Assistant Commissioner 
of Agricultural Income-tax, appellate 
and inspecting, 
(d) Assam Agricultural Income-tax 
Officers. 
(2) The authorities specified in sub-section 
(1) shall be appointed by the Governor and shall 
exercise and perform in the prescribed areas the 
prescribed powers and duties, and their conditions 
of service, and their relations to each other shall 
be such as may be prescribed . 
(3) The Governor of Assam may, by notifi­
cation in the Official Gazette, empower officials, 
whether they be or be not directly recruired to 
the Assam Agricultural Income-tax service, to 
perform such functions in respect of such classes of 
persons or such classes of income and for such 
areas as may be specified in the notification. 
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Return of 
income. 
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( 4) All officers and pf"rsons employed in the 
execution of this Act shall observe and follow 
the orders, instructions and directions of th(! 
Assam Board of Agricultw·al Income-tax: 
Provided that no such order, direction or 
instruction shall be given so as to interfere with 
the discretion of any appellate authority iu the 
exercise of his appellate functions. 
CHAPTER IV 
ASSESSMENT, DEDUCTIONS AND EXEMPTION!'. 
19.(1) The Agricultural Income-tax Officer 
shall, on or before the first day of May or for 
the year commencing 1st April, 1939 any 
later day notified by Government in each 
year, give notice by publication in the press and 
otherwise in the manner prescribed by rules, 
requiring every person whose agricultural inc1;mc 
exceeds the limit of taxable income prescribed in 
section 6 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 
(along with such other particulars as may be 
required by the notice ) his total agricultural 
income during the previous year : 
Provided that the Agricultural Income-tax 
Officer may in his discretion extend the date for 
the delivery of the return in the case of any per­
son or class of persons ; 
{2) In the case cf any person whose total 
agricultural income is, in the opinion of the 
Agricultural Income-tax Officer, of such amount 
as to render such person liable to payment of 
agricultural income-tax for any financial year, 
the Agricultural Income-tax Officer· may serve 
in that financial year a notice in the prescribed 
form upon him requiring him to furnish, within 
the prescribed period, a return in the prescribed 
form and verified in the prescribed manner set­
ting forth his total agricultural income during the 
previous year. 
(3) If any person has not furnished a return 
within the time allowed by or under sub-section 
(1), or sub-section (2) or, having furnished a 
return under either of those sub-sections, dis­
covers any omission or wrong statement therein, 
he may furnish a return or a revised r.-:turn, 
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. 20. (1) If the Agricultural Income-tax Officer 
is satisfied that a return made under section 19 
is correct and complete, he shall assess the total 
agricullural income of the assessee, and shall 
determine the sum payable by him on the basis 
of such return. 
(2) If the Agricultural Income-tax Officer has 
1 eason to believe that a retu .rn made under sec­
tion 19 is incorrect or incomplete, he shall serve 
on the person who made the return a notice 
requiring him, on the date to be specified there­
in, either to attend at the office of the Agricul­
tural Income-tax Officer or to produce or to 
cause to be there produced any evidence on 
which such person may rely in support of the 
return. 
(3) On the day specified in the notice under 
sub-section (2) or as soon afterwards as may be, 
the Agricultural Income-tax Officer after hear­
ing such evidence as such person may produce 
and such other evidence as the Agricultural 
Income-tax Officer may require on specified 
points, shall, by an order in writing, assess the 
total agricultural income of the assessee and 
determine the sum payable by him on such 
assessment: 
Provided that the Agricultural Income-tax 
Officer shall not require the production of any 
accounts relating to a period more than three 
years prior to the previous year. 
(4) If the principal officer of any company 
or other person fails to make a return under 
sub-section (1) or sub-section (2) of section 19, 
as the case may be or, having made the return, 
fails to comply with all the terms of the notice 
issued under sub-section (2) of this section, or 
to produce any evidence required under 
sub-section (3) of this section, the Agricultural 
Income-tax Officer 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 Agricultural Income-tax Officer 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. 
Cancellation 21. Where an assessee, or in case of a com­
~ assessme?t pany the principal officer thereof, within one 
•n certam th fj I . f . f d d ca.ses and mon rom t 1e servtce o a nottcc o cman 
fre&h assess- issued as hereinafter provided satisfies the Agri­
me.nt thereof. cultural Income -Tax Officer that he was prevent· 
ed by sufficient cause from making the return 
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required by section 19 or that he did not receive 
the notice issued under sub-section (2) of section 
19 or sub-section (2) of section 20 or that he had 
not a reasonable opportunity to comply or was 
prevented by sufficient cause from complying with 
the terms of the last mentioned notices the Agri· 
cultural Income- Ta'{ Officer shall cancel the 
assessment and proceed to make a fresh assessment 
in accordance with the provisions of section 20. 
Penalty for 22. (1) If the Agricultural Income-tax Officer, 
co~cealment or the Assmant QQ.m~sion~f Agricultural 
of mcome. Income-t~, o~'fii~'COmro:rSSl"6net of Agricultura l 
Income-taxf in the course of any proceeding 
under this Act, is satisfied that an assessee,-
(a) has without reasonable cause failed to 
furnish the return of his total income 
which he was required to furnish 
under sub-section (1) or sub-section 
(2) of section 19 or bas without 
reasonable cause failed to furnish it 
within the time allowed and in the 
manner required in the provisions 
made under the abovementioned 
sub-sections, or 
(b) has concealed the particulars of his 
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 pay by way of penalty, 
in the case referred to in clause (a), 
in addition to the amount of agri­
cultural income -tax payable by him, 
a sum not exceeding that amount, anti 
in the case referred to in clause (b) 
in ad<lition to any tax paid by him, a 
sum not exceeding the amount of 
agricultural income -tax, which would 
have been avoided if the income so 
returned by him had been accepted 
as the correctincome : 
Provided that-
( a) no penalty for failure to furnish the 
retUJ n of his total agricul tural income 
shall be imposed on an assessee whose 
total agricultural income is less thau 
rupees five thousand unless he has 
been served with a notice under sulr 
llection {2) of section 19 ; 
16 
(b) where a person has failed to comply 
with a notice under sub-sect ion (2) of 
section 19 or under section 30 and 
proves that he has no income liable 
to tax, no penalty shall be imposed 
under this sub-section ; 
(c) no penalty shall be imposed under this 
sub-section upon any person assessable 
as the agent of any person not resi­
dent in Assam for failure to furnish 
the return required under section 19 
unless a notice under sub-section (2) 
of that section bas been served on 
him; 
(d) no order under this section shall be 
made unless the assessee bas been 
heard, or has been given a reasonable 
opportunity of being beard: 
Provided further that no prosecul ion for an 
offence under this Act shall be insti­
tuted in respect of the same facts on 
which a penalty has been imposed 
under this section . 
. {2) If o.J)teE A Qlr)1miss!oner~.oL i\~r~cultural 
I ncome-tax~or~~SS\1G:it COnii~uss10ner of 
Agricu lturat' Income-tax makes an ord~r under 
sub-section (1), he shall lorthwith send a copy of 
the same to the Agricultural Income-tax Officer 
in whose jurisdiction the assessee concerned 
resides. 
Notice of 23. When the Agricultural Income-tax Officer 
demand. has determined a sum to be payable by an asses­
sec under section 20, or when an order has 
been passed under section 22 for the payment 
of penalty, the Agricultural Income -tax Officer 
shall serve on the assessee a notice of demand in 
the prescribed form specifying the sum so 
payable. 
A p p e a 1 24.(1) Any assessee objecting to the amount 
a g a i n s t of income or the amount of tax as determined 
assedssme nth~ under section 20 or denying his liability to be 
un er 19 d d th" A b" · d Act. assesse un er ts ct oro ~ectmg to any or er 
passed against him under section 21 or 22 made 
by the Agricultural Income-tax Officer, may 
appeal to the Assistant Commissioner ol 
Agricultural Income-tax against the assessment or 
against such order: 
Provided that no appeal shall lie in respect 
of an assessment made under sub-section ( 4) of 
section 20. 
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(2) Every appeal under this section shall ordi­
narily be presented within thirty days of receipt 
of the notice of demand relating to the assess­
ment or penalty objected to, or of the order 
under section 2 L, as the case may be, but the 
authority before whom the appeal is filed may 
admit an appeal after the expiration of the pres­
cribed period, if he is satisfied that the appellant 
had sufficient cause for not presenting it within 
the prescribed period. 
(3) Every appeal under this section shall be 
presented in the prescribed form and shall be 
verified in t.he prescribed manner. 
(4) The appellate authority shall fix a day 
and place for hearing of the appeal, and may 
from time to time adjourn the hearing and make 
such further enquiry as he thinks fit. 
(5) In disposing of an appeal, the Assistant 
Commissioner of Agricultw·al Income-tax may 
in the case of an order of assessment:-
(a) confirm, reduce, enhance or annul the 
assessment ; 
(b) set aside the assessment and direct the 
Agricultural Income-tax Officer to make 
a fresh assessment after such further 
enquiry as may be directed; or, in the 
case of an order under section 21 or 22 
confirm, cancel or vary such order: 
Provided that no enhancement of an assess­
ment shall be made under this section, unless 
the appellant has had a reasonable opportunity 
of showing cause against such enhancement. 
A_p pea I 25. The provisioru of the foregoing section 
agrunst order shall, so far as may be, apply to any order of 
of refusal of 1. I f fi d d · 'bl d h ul refund. re usa o any rc un a mtssl e un er t e r es 
prescribed under section 50. 
A p p c a 1 26. (1) Any assessee objecting to an orde r 
afainst ord.cr passed by an Assistant Commissioner of Agricul­
o aGo Ass~s- tural Income-tax under section 22 or to an order 
!i~~cr ~r enhancing his assessment under sub-section (5)(a) 
Agricultural of section 24, may appeal to tht. Commis­
lncome-tax. sioncr of Agricultural Income-tax within thtrty 
days of the date on which he was served with 
the notice of such order. 
(2) Every appeal under this section shall be 
presented in the prescribed form and shall be 
verified in the prescribed manner. 
(3) In disposing of the appeal the Commissioner 
of Agricultural Income-tax shall, after giving 
the appellant an opportunity of being heardl 
pass such orders ~hereon as he thiqks fit, 
Powers 
review. 
18 
of 27. (1) The Commissioner of Agricultural 
Income-tax may of his own motion or on petition 
call for the records of any proceedings under 
this Act which have been taken by any authority 
subordinate to him. 
(2) On receipt of the record the Commis­
sioner of Agricultural Income-tax may make 
such inquiry, or cause such inquiry to be made, 
and subject to the provisions of this Act, may 
pass such orders thereon, as he thinks fit : 
Provided that he shall not pass any orde r 
prejudicial to the assessee without hearing him 
or giving him a reasonable opportunity of being 
beard. 
(3) Any order passed by the Comm issioner 
of Agricultural Income-tax under sub-section (2) 
shall be final, subject to any reference that 
may be made to the High Court under section 
28. 
R-r f 28. (1) If, in the course of any assessment 
e~erence o d hi A di . . case by Com- un er t s ct or any procee ng m connection 
missioner of therewith other than a proceeding under Chap­
Agricultural ter VII, a question of law arises, the Board may, 
Income-~ h either of its own motion or on reference from any 
~ourt . •g Agricultural Income-tax authority subordinate 
to it, draw up a statement of the case and refer 
it with its own opinion to the High Court. 
(2) Within sixty days of the date on which he 
is served with notice of an order under section 
24 or of an order under section 27 enhancing an 
assessment or otherwise prejudicial to him, the 
assessee in respect of whom the order or decision 
was passed may, by application accompanied 
by a fee of one hundred rupees or such lesser 
sum as may be prescribed, require the Board to 
refer to the High Court any question of law 
arising out of such order or decision, and the 
Board shall, within sixty days of the receipt of 
such application, draw up a statement of the 
case, and refer it with its own opinion there on 
to the High Court: 
Provided that a reference shall lie from an 
order under section 27 only on a question of 
law arising out of that order itself, and not on 
a question of law arising out of a previous 
order under section 24 revised by the order 
under section 27 : 
Provided further that, if, in exercise of his 
power of revision under section 27, the revision:1l 
authority decides the question, or if the Board 
rejects the application on the ground that it is 
time-barred or otherwise incompetent, or if, in 
exercise of its power under su~ction (3), the 
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Board refuses to state the case, the assessee may, 
within thirty days from the date on which he 
receives notice of the order passed by the rcvi­
sional authority or by the Board, as the case qmy 
be, withdraw his applicat ion, and if he docs so, 
the fee paid shall be refunded. 
(3) If on any application being made under 
sub-section (2), the Board refuses to state the 
case on the ground that no question of law 
arises, the assessee may apply, within six months 
of the date on which he is served with the notice 
of the refusal, to the High Court, and the High 
Court, if it is not satisfied with the correctness of 
the decision of the Board, may require the Board 
to state the case and to refer it, and, on receipt 
of any such requisition, the Board shall state and 
refer the case accordingly . 
(4) If, on any application being made 
und er sub-section (2), the Board rejects it on the 
ground that it is time-barred, the assessee may 
within sixty days from the date on which he is 
served with the order of the Board, apply to the 
High Court, and the High Court, if it is not 
satisfied with the correctness of the decision of the 
Board, may require the Board to treat the 
application as made within the time allowed 
under sub-section (2). 
(5) If the High Court is not satisfied that 
the statements in a case referred under this 
section are sufficient to enable it to determine 
the question raised thereby, the Cow·t may refer 
the case back to the Board to make such addi­
tions thereto or such alterations therein as the 
Court may direct in that behalf. 
(6) The High Court upon the hearing of 
any such case shall decide the questions of law 
raised thereby, and shall deliver its judgment 
thereon containing the grounds on which such 
decision is founded, and shall send to the Board 
a copy ofsuchjudgment, under the seal of the 
Court and signature of the R egistrar, and the 
Board shall dispose of the case accordingly, or, 
if the case arose on a reference from any Agricul­
tural Income-tax authority subordinate to it 
shall forward a copy of such judgment to such 
authority who shall dispose of the case conform ­
ably to such judgment. 
(7) Where a reference is made to the High 
Court on the application of an assessee, the costs 
shall be in the dlScretion of the Court. 
(8) Notwithstanding that a reference has 
been made under this section to the High Court, 
agricultura l income-tax shall be payable in accord­
ance with the assessment made in the case : 
Provided th at, if the amount of an assess­
n:ent is reduced as a result of such reference, the 
amount overpaid shall be refunded with such in­
terest as the Board may allow. 
(9) Section 5 of the India:1 Limitation Act, 
1908, shall apply to an application to the High 
Court by an assessee under sub-section (3) or 
sub-section (4). 
A p pea 1 29. ( i) An appeal sbaiJ lie to His Majesty 
against any in Council from any judgment of the High Court 
Jrd t m H!l t delivered in a reference made under the foregoing 
Co~r~ 
1
gb section in any case which the High Court certi -
. fies to be a fit one for appeal to His Majesty in 
Council. 
(ii) The provisions of the Code of Civil 
Procedure relating to the appeals to His Majesty 
in Council shall so far as may be apply in the 
case of appeals unc!er this section in like manner 
as they apply in cases of appeals from decrees of 
High Court: 
Provided that nothing in this sub-section will 
be deemed to affect the provisions of sub-section 
(6) or sub-section (8) of the foregoing section : 
Provided fw·ther that the High Court may on 
a petition made for the execution of the order of 
His Majesty in Council in respect of any costs 
awarded thereby transmit the order for execution 
to any Courts subordinate to the High Court. 
(iii) Where the judgment of the High 
Court is varied or reversed in appeal under this 
section, effect shall be given to the orde r of His 
Maj esty in Council in the manner provided in 
sub-sections (6) and (8) of the foregoing section in 
the case of a judgment of the High Court. 
Jncome es- 30. If for any reason any agricult11ral income 
caping assess-chargeab le to agricultural income-tax has escaped 
ment. assessment for any financial year, or has been 
assessed at too low a rate, the Agricultural 
Income-tax Officer may, at any time within three 
years of the end of that financial year, serve on 
the person liable to pay agricultural income­
tax on such agricultural income or, in the case of 
a company on the principal officer thereof, a 
notice containing all or any of the r equirements 
which may be included in a notice under sub ­
section (2) of section 19, and may proceed to 
assess or reassess such income, and the provisions 
of this Act shall, so far as may be, apply accord­
ingly as jf the notice were a notice issued under 
that sub-section : 
Provided that the tax shall be charged at 
the rate at which it would have been charged if 
IX of 1908. 
0 
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such income had not escaped assessment or full 
assessment, as the case may be : 
Provided further that ·when the income, 
profits or gains conct"med arc agricultural 
income, profit s or gains liable to as~essmcn t for 
a year ending prior to the commencement of this 
Act, or where the asscssm<·nt made or to be made 
is an assessment made or to be made on a person 
deem ed to be the agent of a non-resident person, 
this sub-section shall have effect as if for the 
period of Lhrce years a period of one year wet·e 
substituted. 
Rectification 31 .(1) The authority which pas~cd an order on 
ofmistakes. appeal or J'CviC\\ may, at any time within three 
years from the date of such order, and the 
Agricultural lncome-tax Officer may at any time 
within three years from the date of any assessment 
order passed by him, of his own motion, rectiFy 
any mistake apparen t from the record of the 
appeal or assessment, as the case may be, and 
shall within the like period rectify any such 
mistake as has been brought to his notice by ;.m 
assessee: 
Provided that no such rectification shall be 
made having the effect of enhancing the asse~s­
ment, unless the appellate authority or the 
Agricultural Income-tax Officer, as the case may 
be, bas given notice to the assessee of his 
intention so to do and has allowed him a 
reasonable opportunity of being heard; 
(2) Where any such rectification has the effect 
of reducing the assessment, the Agricultural 
Income-tax Officer shall make any refund which 
may be due to such assessee 
(3) Where any such rectification has the effect 
of enhancing the assessment, lhe Agricultural 
Income-tax Officer shall serve on the assessee a 
notice of demand in the prescribed form speci­
fying the sum payable, and such notice of 
demand shall be deemed to be issued und

Excerpt shown. Open the full act in Lexace.

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