(1) Every person whose total agricultural income during the previous year exceeded the maximum amount which is not chargeable to agricultural income-tax1 [or every person who holds land under plantation crop the total extent of which is not less than2 [fifteen acres]] shall furnish to the 3 [Assistant Commissioner of AgriculturalIncome-tax] so as to reach him before the 4 [expiry of four months from the end of the previousyear] a return in the prescribed form and verified in the prescribed manner, setting forth his total agricultural income during the previous year:
5 [Provided that the return of agricultural income for the previous year ending on or after the 31st March, 1982, but before the date of commencement of the Karnataka Agricultural Income-tax (Amendment) Act, 1983 shall be filed within four months from the date of commencement of the saidAct.]
6 [Provided further that the return of agricultural income for the previous year ending on the 31st day of March, 2001, shall be filed before the expiry of sixteen months from the end of such previous year]
(2) In the case of any person whose total agricultural income is, in the opinion of the3 [Assistant Commissioner of Agricultural Income-tax], of such amount as to render such person liable to payment of agricultural income-tax for any financial year, he may7 [before the end of the relevant financial year, serve] 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 (along with such other particulars as may be provided for in the notice) his total agricultural income during the previous year.
8 [(2A) (a) Before any person submits any return under sub-section (1) or sub-section (2), he shall, in the prescribed manner, pay in advance the full amount of tax payable by him on the basis of such return and shall furnish along with the return satisfactory proofof the payment of such tax. After the assessment is made under section 19 the amount of tax so paid shall be deemed to have been paid towards the tax so assessed and excess amount, if any, paid shall be refunded to such person.
(b) If after the assessment under section 19 it is found that the tax paid under clause (a) was less than the tax payable by more than twenty-five per cent, the3 [Assistant Commissioner of Agricultural Income-tax] may direct such person to pay in addition to the tax, by way of penalty, a sum9 [equal to twenty four per cent per annum of the amount of tax so paid short calculated from the date of expiry of the year to which such taxrelates:]
10 [Provided that in the case of a person whose total agricultural income as determined by the3 [Assistant Commissioner of Agricultural Income-tax] is less than twenty thousand rupees, the penalty imposed shall not exceed one hundredrupees.]]
11 [Provided further that no penalty under this sub-section shall be imposed unless the assessee affected has had a reasonable opportunity of showing cause against such imposition.]1
12 [(2B) If any person who has not been served with a notice under sub-section (2) has sustained a loss in any previous year and claims that the loss or any part thereof should be carried forward under section 15, he may furnish, within the time allowed under sub-section (1), or within such further time which on an application made in the prescribed manner, the3 [Assistant Commissioner of Agricultural Income-tax] may, in his discretion a return of loss in the prescribed form and verified in the prescribed manner and containing such other particulars as may be prescribed, and all the provisions of the Act, shall apply as if it were a return under sub-section(1).]
(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 any of those sub-sections discovers any omission or wrong statement therein, he may furnish a return or a revised return, as the case may be, at any time before the assessment is made.
13 [(3-A) Where a return under sub-section (1) or sub-section (2) or sub-section (3) for any assessment year is furnished after the date specified under sub-section (1) or is not furnished then, in cases where the Agricultural Income Tax Officer has not extended the date of furnishing the return under section 61, the assessee shall be liable to pay in addition to the tax payable, interest at the rate of twenty-four percent per annum reckoned from the day immediately following the date specified in sub-section (1) to the date of the furnishing of the return or where no return has been furnished the date of completion of the assessment, on the amount of the tax payable on the total agricultural income as determined on regular assessment as reduced by the tax paid ifany.]
14 [Provided that in the case of an assessee holding land not exceeding fifty acres, the interest payable shall not exceed five thousand rupees]
(4) The3 [Assistant Commissioner of Agricultural Income-tax] may serve on any person who has made a return under sub-section (1) or upon whom a notice has been served under sub-section (2) a notice requiring him, on a date to be therein specified, to produce, or cause to be produced, such accounts or documents as such officer may require8 [for the purpose of this Act:]
Provided that such officer shall not require the production of any accounts relating to a period more than three years prior to the previous year.
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1. Inserted by Act 6 of 1995w.e.f. 1.4.1995
2. Substituted by Act 1 of 1996w.e.f. 1.4.1995
3. Substituted by Act 5 of 1993w.e.f. 9.11.1992
4. Substituted by Act 14 of 1983w.e.f. 1.12.1982
5. Inserted by Act 14 of 1983w.e.f. 1.12.1982
6. Inserted by Act 5 of 2002w.e.f. 1.4.2002
7. Substituted by Act 29 of 1963w.e.f. 31.10.1963
8. Inserted by Act 29 of 1976w.e.f. 1.4.1975
9. Substituted by Act 5 of 2000w.e.f. 1.4.2000
10. Substituted by Act 10 of 1987w.e.f. 1.4.1987
11. Inserted by Act 38 of 1986w.e.f. 17.10.1986
12. Inserted by Act 10 of 1987w.e.f. 1.4.1987
13. Inserted by Act 18 of 1994w.e.f. 1.4.1994
14. Inserted by Act 7 of 2003w.e.f. 1.4.2002
Section 19 - Assessment of income
(1) If the1 [Assistant Commissioner of Agricultural Income-tax] is satisfied that a return made under section 18 is correct and complete, he shall, by order in writing, assess the total agricultural income of the assessee and determine the sum payable by him on the basis of such return.
(2) If the1 [Assistant Commissioner of Agricultural Income-tax] is not satisfied without requiring the presence of the person who made the return or the production of evidence, that the return is correct and complete, he shall serve on the person who made the return a notice requiring him on the date specified therein, either to attend at the office of the1 [Assistant Commissioner of Agricultural Income-tax] or to produce or to cause to be 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, the1 [Assistant Commissioner of Agricultural Income-tax], after considering such evidence as such person may produce and such other evidence as that 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 the basis of such assessment.
(4) If any person fails to make a return under sub-section (1) or sub-section (2) of section 18, as the case may be, or fails to comply with all the terms of a notice issued under sub-section (4) of that section or under sub-section (2) of this section, the1 [Assistant Commissioner of Agricultural Income-tax] shall make the assessment to the best of his judgment and determine the sum payable by the assessee on the basis of such assessment,2 [x x x]:
3 [Provided further that before making an assessment to the best of his judgment, the1 [Assistant Commissioner of Agricultural Income-tax] shall give to the assessee a reasonable opportunity of beingheard.]
4 [(5) x x x
(6) x xx]
(7) When in the course of the assessment of the total agricultural income of the assessee it is found that a loss has been sustained which he is entitled to have set off under section 15, the1 [Assistant Commissioner of Agricultural Income-tax] shall notify to the assessee by order in writing the amount of the loss as computed by him.
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1. Substituted by Act 5 of 1993w.e.f. 9.11.1992
2. Omitted by Act 18 of 1994w.e.f. 1.4.1994
3. Inserted by Act 29 of 1963w.e.f. 31.10.1963
4. Omitted by Act 10 of 1987w.e.f. 1.4.1987
Section 19A - [Omitted]
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1. Sections 19A to 19D inserted by Act 10 of 1987 w.e.f. 1.4.1987.
2. Sections 19A, 19B and 19C omitted by Act 18 of 1994 w.e.f. 1.4.1994.
Section 19B - [Omitted]
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1. Sections 19A to 19D inserted by Act 10 of 1987 w.e.f. 1.4.1987.
2. Sections 19A, 19B and 19C omitted by Act 18 of 1994 w.e.f. 1.4.1994.
Section 19C - [Omitted]
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1. Sections 19A to 19D inserted by Act 10 of 1987 w.e.f. 1.4.1987.
2. Sections 19A, 19B and 19C omitted by Act 18 of 1994 w.e.f. 1.4.1994.
Section 19D - Time limit for completion of assessmants and re-assessments
(1) No assessment under sections 19, 19A, 19B and 19C for any year shall be made after a period of1[three years] from the date on which the return under section 18, for that year is submitted by an assessee.
2[Provided that the assessment proceedings relating to any year ending before the commencement of the Karnataka Taxation Laws (Amendment) Act, 1997, in respect of which a return under sub-section (1) has been submitted before such commencement, shall be completed within a period of two years from such commencement.]
(2) In computing the period of limitation for assessment under sections 19, 19A, 19B and 19C,--
(a) the time during which the proceedings for assessment in question have been deferred on account of any stay order granted by any Court or any other authority shall be excluded;
(b) the time during which the assessment has been deferred in any case or class of cases by the Commissioner for reasons to be recorded in writing shall be excluded:
Provided that nothing contained in this section limiting the time within which assessment may be made, shall apply to an assessment made on the assessee or any person in consequence of, or to give effect to, any finding, direction or order made under sections 32, 32A, 34 and 35 or any judgement or order made by any Court:
Provided further that nothing in this section shall apply to any assessment proceeding which is pending prior to the commencement of the Karnataka Agricultural Income Tax (Amendment) Act, 1987.
(3) Where an assessment under this section is not concluded within the time specified in sub-section (1), the total and taxable income declared by an assessee in the annual return shall be deemed to have been assessed for that year on the basis of the said return2[and the provisions of this Act relating to agricultural income escaping assessment, payment, recovery, appeal and revision shall mutatis mutandis apply to such deemed assessment] and the tax so assessed shall be payable by the assessee.]
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1. Substituted by Act 18 of 1999 w.e.f. 1.9.1999 by notification. Text of the notification is at the end of the Act.
2. Inserted by Act 7 of 1997 w.e.f. 1.4.1997.
Section 20 - Power to make provisional assessment in advance of regular assessment
(1) The1[Assistant Commissioner of Agricultural Income-tax] may, at any time after the receipt of a return made under section 18, proceed to make in a summary manner, a provisional assessment of the tax payable by the assessee, on the basis of his return and the accounts and documents, if any, accompanying it, after giving due effect to (i) the allowance referred to in paragraph (2) of the proviso to clause (c) of section 5, and (ii) any loss carried forward under section 15.
(2) A partner of a firm may be provisionally assessed under sub-section (1) in respect of his share in the firm's income, profits and gains, if its return has been received, although the return of the partner himself may not have been received.
(3) There shall be no right of appeal against a provisional assessment made under sub-section (1).
(4) After a regular assessment has been made under section 19, any amount paid or deemed to have been paid towards a provisional assessment made under sub-section (1), shall be deemed to have been paid towards the regular assessment, and where the amount paid or deemed to have been paid towards the provisional assessment, exceeds the amount payable under the regular assessment, the excess shall be refunded to the assessee.
(5) Nothing done or suffered by reason or in consequence of any provisional assessment made under this section shall prejudice the determination on the merits, of any issue which may arise in the course of the regular assessment under section 19.
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1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992
Section 21 - Cancellation of assessment in certain cases
Where an assessee within one month from the service of a notice of demand issued as hereinafter provided, satisfies the1[Assistant Commissioner of Agricultural Income-tax] that he was prevented by sufficient cause from making the return required by section 18 or that he did not receive the notice issued under sub-section (2) or sub-section (4) of that section or sub-section (2) of section 19 or that he had not a reasonable opportunity to comply, or prevented by sufficient cause from complying with the terms of any such notice, the1[Assistant Commissioner of Agricultural Income-tax] shall cancel the assessment and proceed to make a fresh assessment in accordance with the provisions of section 19.
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1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992
Section 22 - Penalty for concealment of income
(1) If the1[Assistant Commissioner of Agricultural Income-tax] or the1[Joint Commissioner] or the Commissioner is satisfied that any person,--
(a) has without reasonable cause failed to furnish the return of his total agricultural income which he was required to furnish under sub-section (1) or sub-section (2) of section 18; or
(b) has without reasonable cause failed to furnish such return within the time allowed and in the manner required by sub-section (1) of section 18 or by a notice served under sub-section (2) of that section; or
(c) has, without reasonable cause, failed to comply with a notice issued under sub-section (4) of section 18 or under sub-section (2) of section 19; or
(d) has concealed the particulars of his agricultural income or has deliberately furnished inaccurate particulars of such income,
he may direct that such person shall pay by way of penalty, in addition to the amount of agricultural income-tax, if any, payable by him, a sum not exceeding that amount: 39
Provided that,--
(a) no penalty shall be imposed under this sub-section upon a person who has failed to furnish a return under sub-section (1) of section 18, if he proves that he has no income liable to tax;
(b) where a person has failed to comply with a notice under sub-section (2) or sub-section (4) of section 18 or under sub-section (2) of section 19 and proves that he has no income liable to tax, the penalty imposable under this sub-section shall not exceed ten rupees;
(c) no penalty shall be imposed under this sub-section upon any person assessable as the agent of any person not resident in the2[State of Karnataka] for failure to furnish the return required under section 18 unless a notice under sub-section (2) thereof or under section 35 has been served on him.
(2) No order under sub-section (1) shall be made unless the assessee has been heard or has been given a reasonable opportunity of being heard.
(3) No prosecution for an offence against this Act shall be instituted in respect of the same facts on which a penalty has been imposed under subsection (1).
(4) If the Commissioner or1[Joint Commissioner] makes an order under sub-section (1) he shall forthwith send a copy of the same to the1[Assistant Commissioner of Agricultural Income-tax]1concerned.
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1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992
2. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973
Section 23 - Power to assess individual members of certain associations
(1) Where the1[Assistant Commissioner of Agricultural Income-tax] is satisfied that any association of individuals other than a Hindu undivided family, and Aliyasanthana family or branch, Marumakkattayam tarwad or tavazhi or a company is under the control of one member thereof, and that such association has been formed or is being used for the purpose of evading or reducing the liability to agricultural income-tax of any member thereof, he may, with the previous approval of the1[Joint Commissioner] of Agricultural Income-tax, pass an order that the sum payable as agricultural income-tax, by the association shall not be determined, and thereupon the share of each member in the agricultural income of the association shall be included in his total agricultural income for the purpose of his assessment thereon.
Explanation.--(1) A member of an association who owns the whole or the major portion of the capital of the association shall not by reason only of that fact be deemed to control the firm or association.
(2) The1[Joint Commissioner] of Agricultural Income-tax shall not give his approval to any order proposed to be passed by the1[Assistant Commissioner of Agricultural Income-tax], under this section until he has given the firm or association concerned an opportunity of being heard.
(3) Where any member of an association of individuals makes default in the payment of tax on his share of income which has been included in his total agricultural income under the provisions of sub-section (1), such tax may be recovered from the association.
(4) Where the agricultural income-tax is recoverable from an association under this section, a notice of demand shall be served upon it in the prescribed form showing the sum so payable, and such association shall be deemed to be the assessee in respect of such sum for the purposes of Chapter V.
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1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992
Section 24 - Tax of deceased person payable by representative
(1) Where a person dies, his executor, administrator or other legal representative shall be liable to pay out of the estate of the deceased person, to the extent to which the estate is capable of meeting the charge of the agricultural income-tax assessed as payable by such person or any agricultural income-tax which would have been payable by him under this Act if he had not died.
(2) Where a person dies before the 1st June in any year or before he is served with a notice under sub-section (2) of section 18 or under section 36, as the case may be, his executor, administrator or other legal representative shall, on the serving of the notice under sub-section (2) of section 18 or under section 36, as the case may be, comply therewith, and the1[Assistant Commissioner of Agricultural Income-tax]1may proceed to assess the total agricultural income of the deceased person as if such executor, administrator or other legal representative were the assessee.
(3) Where a person dies without having furnished a return which he has been required to furnish under section 18, or having furnished a return which the1[Assistant Commissioner of Agricultural Income-tax] has reason to believe to be incorrect or incomplete such Officer may make an assessment of the total agricultural income of such person and determine the agricultural income-tax payable by him on the basis of such assessment and for this purpose may, by the issue of the appropriate notice which would have had to be served upon the deceased person had he survived, require from the executor, administrator or other legal representative of the deceased person any accounts, documents, or other evidence which he might under section 18 or section 19 have required from the deceased person.
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1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992
Section 25 - Effect of transfer of land
Where a person in receipt of agricultural income for any previous year from any land in the State is found to have transferred his interest in such land to any other person, the transferor and the transferee shall, each, be assessed in respect of his actual share, if any, of the agricultural income for the previous year:
Provided that where the transferor cannot be found, the assessment of such agricultural income of the previous year in which the transfer took place up to the date of the transfer and for the year preceding that year shall be made on the transferee in the like manner and to the like extent as it would have been made on the transferor or where the tax in respect of the assessment made for any or all of such year assessed on the transferor cannot be recovered from him, it shall be payable by and recoverable from the transferee, and the transferee shall be entitled to recover from the transferor the amount so paid by him.
Section 26 - Assessment in case of discontinued company, firm or association or dissolved firm
1[26. Assessment in case of discontinued company, firm or association2[or dissolved firm]2
3[(1) Notwithstanding anything contained in section 3 where agricultural income is received by a company, firm or association of persons and the 41 business through which such income is received is discontinued or any such firm or association of persons is dissolved in any assessment year, the income for the period from the expiry of the previous year for that assessment year upto the date of such discontinuance or dissolution may, at the discretion of the4[Assistant Commissioner of Agricultural Income Tax] be charged to tax in that assessment year.
(2) The total income of each completed previous year or part of the previous year included in such period shall be chargeable to tax at the rate or rates in force in that assessment year, and separate assessments shall be made in respect of each such completed previous year or part of any previous year.]
5[(3) Any person discontinuing any such business or every member of a firm or association dissolved shall give to the Assistant Commissioner of Agricultural Income Tax notice of such discontinuance or dissolution within thirty days thereof and where any such person or member, as the case may be, fails to give a notice required by this sub-section, such officer may direct that a sum shall be recovered from him by way of penalty not exceeding the amount of agricultural income tax subsequently assessed on him in respect of any agricultural income of the company, firm or association of persons upto the date of such discontinuance or dissolution.]
3[(4) Where any business through which agricultural income is received by a company, firm or association of persons is discontinued or any such firm or association is dissolved in any year, any sum received after the discontinuance or dissolution shall be deemed to be income of the recipient and charged to tax accordingly in the year of receipt if such sum would have been included in the total income of the person who carried on the business had such sum been received before such discontinuance or dissolution.
Explanation.--For the removal of doubts, it is hereby declared that where before the discontinuance of such business or dissolution of a firm or association hitherto assessed as a firm or association, or as the case may be, on the company, the crop is harvested and disposed of, but full payment has not been received for such crop, or the crop is harvested and not disposed of, the income from such crop shall, notwithstanding the discontinuance or dissolution be deemed to be the income of the company, firm or association for the year or years in which it is received or receivable and the firm or association shall be deemed to be in existence, for such year or years and such income shall be assessed as the income of the company, firm or association according to the method of accounting regularly employed by it immediately before such discontinuance or dissolution.
(5) Where an assessment is to be made under sub-section (1) or sub-section (4) the4[Assistant Commissioner of Agricultural Income tax] may serve on the person whose agricultural income is to be assessed or in the case of a firm or association, on any person who was a member of such firm or association at the time of its discontinuance or dissolution or in the case of a company on the principal officer thereof, or on the recipient, as the case may be, a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 18 and the provisions of the Act shall, so far as may be, apply accordingly, as if the notice were a notice issued under that sub-section.]
(6) Where such an order has not been passed in respect of a company, firm or association hitherto assessed as the business not discontinued or in respect of a firm or 42 association hitherto assessed as not dissolved, such firm or association shall not be deemed to have been dissolved or the business of such company, firm or association shall not be deemed to have been discontinued, for the purpose of this Act.
(7) Notwithstanding anything contained in sections 32A, 34, 35, 36, 37 or 55, in cases where before the discontinuance of business or dissolution of the firm or association, hitherto assessed as firm or association or on such company the crop is harvested and disposed of but full payment has not been received for such crop, or the crop is harvested and not disposed of proceedings to assess or reassess the income from such crop or to revise any assessment, or reassessment of such income may be commenced within the period of limitation specified under the provisions of the Act in respect of assessment, reassessment or revision or within two years from the date of commencement of the Karnataka Taxation Law (Second Amendment) Act, 1997 whichever is later.]
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1. Substituted by Act 10 of 1987 w.e.f. 1.4.1987.
2. Inserted by Act 7 of 1997 w.e.f. 1.4.1997.
3. Substituted by Act 18 of 1997 w.e.f. 1.4.1975.
4. Substituted by Act 18 of 1997 w.e.f. 4.2.1993.
5. Substituted by Act 18 of 1997 w.e.f. 20.9.1995.
Section 27 - Liability in case of discontinued firm or association
1[27. Liability in case of discontinued firm or association
(1) Where the business of a firm or association of persons is discontinued or such firm or association is dissolved, the2[Assistant Commissioner of Agricultural Income-tax] shall make the assessment of the agricultural income of the firm or association of persons as if no such discontinuance or dissolution has taken place and all the provisions relating to the levy of penalty or any other sum chargeable under any provisions of this Act shall apply, so far as may be, to such assessment.
(2) Every person who was at the time of such discontinuance or dissolution, a partner of such firm or a member of such association and the legal representative of any such person who is deceased, shall be jointly and severally liable to the assessment on such agricultural income and also to pay the amount of agricultural income-tax, penalty or other sum payable and all the provisions of this Act, so far as may be shall apply to any such assessment or imposition of penalty or other sum.]
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1. Substituted by Act 14 of 1983 w.e.f. 1.10.1957.
2. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.
Section 28 - Change in constitution of a firm and succession to business
(1) Where at the time of making an assessment under section 19, it is found that a change has occurred in the constitution of a firm or that a firm has been newly constituted, the assessment shall be made on the firm as constituted at the time of making the assessment.
If the agricultural income-tax cannot be recovered from the firm as so constituted, such tax shall be recoverable from the persons who were members of the firm during the previous year.
(2) Where a person carrying on any business in the course of which agricultural income is received has been succeeded in such capacity by another person, such person and such other person shall each be assessed in respect of his actual share of the agricultural income of the previous year:
Provided that, when the person succeeded in the business cannot be found, the assessment of the agricultural income of the year in which the succession took place up to the date of succession, and for the year preceding that year shall be made on the person succeeding him in the like manner and to the same amount as it would have been made on the person succeeded or when the tax in respect of the assessment made for either of such years assessed on the person succeeded cannot be recovered from him, it shall be payable by and recoverable from the person succeeding, and such person shall be entitled to recover from the person succeeded the amount of any tax so paid.
1[Explanation.--For the purposes of this section, there is a change in the constitution of the firm,--
(a) if one or more of the partners cease to be partners or one or more new partners are admitted, in such circumstances that one or more of the persons who were partners of the firm before the change continue as partner or partners after the change; or
(b) where all the partners continue with a change in their respective shares or in the shares of some of them.]
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1. Inserted by Act 38 of 1986 w.e.f. 17.10.1986.
Section 29 - [Omitted]
1[29. x x x]
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1. Section 29 Omitted by Act 18 of 1994 w.e.f. 1.4.1994.
Section 29A - [Omitted]
1[29A. x x x]
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1. Section 29A Omitted by Act 18 of 1994 w.e.f. 1.4.1994.
Section 29B - [Omitted]
1[29B. x x x]
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1. Section 29B Omitted by Act 18 of 1994 w.e.f. 1.4.1994.
Section 30 - Assessment after partition of a Hindu undivided family
(1) Where at the time of making an assessment under section 19, it is claimed by or on behalf of any member of a Hindu Undivided Family, or branch, an Aliyasanthana family or a Marumakkattayam tarwad or tavazhi hitherto assessed as undivided that a partition or maintenance division has taken place among the members or groups of members of such family, branch, tarwad or tavazhi, the1[Assistant Commissioner of Agricultural Income-tax] shall make such inquiry therein to as he may think fit, and if he is satisfied that there has been a partition or maintenance division of the property by metes and bounds among the various members or groups of members and separate enjoyment by them he shall record an order to that effect:
Provided that no such order shall be recorded until notice of the inquiry has been served on all the adult members of the family, branch, tarwad or tavazhi entitled to the property as far as may be practicable or in such other manner as may be prescribed.
(2) Where such an order has been passed, the1[Assistant Commissioner of Agricultural Income-tax] shall make an assessment of the total agricultural income received by or on behalf of the family, branch, tarwad or tavazhi as such, as if no partition or maintenance division had taken place and each member or group of members shall, in addition to any agricultural income-tax for which he or it may be separately liable, and notwithstanding anything contained in clause (a) of section 12, be liable for a share of the tax on the income so assessed according to the portion of the family, branch, tarwad or tavazhi property allotted to him or it and the1[Assistant Commissioner of Agricultural Income-tax] shall make assessments accordingly on the various members and groups of members in accordance with the provisions of section 19:
Provided that all the members and groups of members whose family, branch, tarwad or tavazhi property has been partitioned or divided for maintenance shall be liable jointly and severally for the tax on the total agricultural income received by or on behalf of the family, branch, tarwad or tavazhi as such up to the date of the partition.
2[Explanation.--For the removal of doubts, it is hereby declared that where before the partition of a Hindu undivided family or branch or an Aliyasanthana family or Marumakkattayam tarwad or Tavazi hitherto assessed as undivided the crop is harvested and disposed off, but full payment has not been received for such crop or the crop is harvested and not disposed off, the income from such crop, shall, notwithstanding the partition, be deemed to be the income of the Hindu undivided family or branch or the Aliyasanthana family or the Marumakkattayam tarwad or the Tavazi for the year or years in which it is received or is receivable, and3[the Hindu Undivided Family or branch or the Aliyasanthana Family or the Marumakkattayam tarvad or tavazi shall be deemed to be in existence for such year or years, as such income] shall be assessed as the income of such family or branch or Aliyasanthana family or Marumakkattayam tarwad or Tavazi according to the method of accounting regularly employed by it immediately before such partition.]
(3) Where such an order has not been passed in respect of a Hindu family, an Aliyasanthana family or branch or a Marumakkattayam, tarwad or tavazhi hitherto assessed as undivided, such family, branch, tarwad or tavazhi shall be deemed for the purpose of this Act to continue to be an undivided family branch, tarwad or tavazhi.
4[(4) Notwithstanding anything contained in sections 32A, 34, 35, 36, 37 or 55, in cases where before the partition of a Hindu Undivided Family or branch or the Aliyasanthana Family or the Marumakkattayam tarvad or tavazi, hitherto assessed as undivided, the crop is harvested and disposed of, but full payment has not been received for such crop, or the crop is harvested and not disposed of, proceedings to assess or re-assess the income from such crop or to revise any assessment for re-assessment of such income may be commenced within the period of limitation specified under the provisions of this Act in respect of assessment, re-assessments or revisions or within one year from the date of the commencement of the Karnataka Taxation Laws (Amendment) Act, 1994 whichever is later.
(5) Where an assessment is to be made under sub-section (4), the Agricultural Income-tax Officer may serve on the person whose agricultural income is to be assessed, a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 18 and the provisions of the Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that sub-section.]
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1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.
2. Inserted by Act 23 of 1985 w.e.f. 1.10.1957 and Substituted by Act 19 of 1989 w.e.f. 1.10.1957.
3. Inserted by Act 18 of 1994 w.e.f. 1.10.1957.
4. Inserted by Act 18 of 1994 w.e.f. 1.4.1994.
Section 31 - Notice of demand
Where any tax or penalty is due in consequence of any order passed under or in pursuance of this Act, the1[Assistant Commissioner of Agricultural Income-tax] shall serve on the assessee a notice of demand in the prescribed form specifying the sum so payable.
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1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.
Section 32 - Appeal against assessment
1[(1) Any assessee aggrieved by any of the following orders of an2[Assistant Commissioner of Agricultural Income-tax] may appeal to the3[Joint Commissioner] (Appeals) against such orders:--
(a) imposing penalty under clause (b) of sub-section (2A) of section 18;
(b) rejecting the plea of denial of the liability to be assessed under the Act;
(c) assessing the amount of income or determining the amount of tax or computing the amount of loss under sub-sections (3) or (4) of section 19.
(d) refusing to reopen an assessment made under sub-section (4) of section 19 in pursuance of section 21;
(e) imposing a penalty under section 22;
(f) assessing the case of discontinued company, firm or association under section 26;
(g) refusing registration of a firm under section 29;
(h) refusing partly or wholly the claim of partition under section 30; 3[or assessing in accordance with the explanation to sub-section (2) of section 30.]3
(i) assessing the escaped income under section 36; and
(j) refusing to rectify or rectifying a mistake under section 37.]1
3[(k) refusing to grant permission for composition under sub-section (4) of section 66;]
(2) The appeal shall be presented within a period of sixty days from the date of service of the order, but the appellate authority may admit an appeal presented after the expiration of the said period, if the authority is satisfied that the appellant had sufficient cause for not presenting it within the said period.
(3) The appeal shall be in the prescribed form and shall be verified in the prescribed manner.
(4) The appellate authority shall fix a day and place for the hearing of the appeal and may from time to time adjourn the hearing and make or cause to be made such further inquiry as it thinks fit.
(5) In disposing of an appeal, the appellate authority may,--
(a) in the case of an order of assessment,--
(i) confirm, reduce, enhance or annul the assessment;
(ii) set aside the assessment and direct the2[Assistant Commissioner of Agricultural Income-tax] to make a fresh assessment after such further inquiry as may be directed; or
(b) in the case of any other order, confirm, cancel or vary such order:
Provided that no enhancement of an assessment or penalty shall be made under this section unless the appellant has had a reasonable opportunity.
4[(6) Notwithstanding that an appeal has been preferred under sub-section (1), tax shall be paid in accordance with the assessment made in the case:
Provided that the appellate authority may in its discretion give such directions as it thinks fit, in regard to the payment of tax, if the appellant furnishes sufficient security to its satisfaction in such manner as may be prescribed.]
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1. Substituted by Act 8 of 1989 w.e.f. 8.9.1988.
2. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.
3. Inserted by Act 18 of 1994 w.e.f. 9.4.1994.
4. Inserted by Act 29 of 1963 w.e.f. 1.1.1964.
Section 32A - Revisional powers of Joint Commissioner
1[32A. Revisional powers of2[Joint Commissioner]
(1) The2[Joint Commissioner] may, of his own motion, call for and examine the record of any order passed or proceeding recorded under the provision of this Act by an2[Assiatant Commissioner of Agricultural Income-tax] Officer or an2[Agricultural Income-tax Officer] or any other officer subordinate to him3[x x x] for the purpose of satisfying himself as to the legality or propriety of such order or as to the regularity of such proceeding in so far as it is prejudicial to the interests of revenue and pass such orders with respect thereto as he thinks fit.
(2) In relation to an order of assessment passed under this Act, the power under sub-section (1) shall be exercisable only within a period of4[four years] from the date on which the order was passed.
(3) No order shall be passed under sub-section (1) enhancing any assessment, unless an opportunity has been given to the assessee to show cause against the proposed enhancement.]
5[(4) The power under this section shall not be exercisable in respect of issues which are the subject matter in appeal under section 32 or section 34 or in a revision before the High Court;]
6[Explanation.--For the removal of doubts, it is hereby declared that subject to the provisions of sub-section (2), the revisional power conferred on the1[Joint Commissioner] by sub-section (1) shall be exercisable in respect of an order passed under this Act, by any authority subordinate to him before or after the conferment of revisional power on him.]
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1. Inserted by Act 14 of 1983 w.e.f. 1.12.1982.
2. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.
3. Omitted by Act 18 of 1994 w.e.f. 1.4.1994.
4. Substituted by Act 12 of 1991 w.e.f. 1.4.1991.
5. Inserted by Act 18 of 1994 w.e.f. 1.4.1994.
6. Inserted by Act 23 of 1985 w.e.f. 1.12.1982.
Section 33 - Appeal against order of refusal to refund
33. Appeal against order of refusal to refund
The provisions of the foregoing section shall, so far as may be, apply to any order of refusal of any refund admissible under this Act or the rules made thereunder.
Section 34 - Appeal to Appellate Tribunal
1 [34. Appeal to Appelatte Tribunal
2 [(1) Any officer empowered by the State Government in this behalf or any assessee objecting to an order of the3 [Assistant Commissioner of Agricultural Income-tax] or an 3 [Agricultural Income-taxOfficer] under section 23, or an order passed by the 3 [JointCommissioner] under section 22 or section 32 or section 32A, may appeal to the Appellate Tribunal within sixty days from the date on which the notice of such order was communicated to theassessee.]
(2) The Appellate Tribunal may admit an appeal preferred after the period of sixty days referred to in sub-section (1), if it is satisfied that the assessee had sufficient cause for not preferring the appeal within that period.
(3) The appeal shall be in the prescribed form, shall be verified in the prescribed manner, and shall be accompanied by a fee equal to two per cent of the amount of assessment objected to, provided that the sum payable shall in no case be less than five rupees or more than two hundred rupees.
(4) The Appellate Tribunal shall, after giving both parties to the appeal a reasonable opportunity of being heard, pass such orders thereon as it thinks fit:
Provided that, if the appeal involves a question of law on which the Appellate Tribunal has previously given its decision in another appeal and either a revision petition in the High Court against such decision or an appeal in the Supreme Court against the order of the High Court thereon is pending, the Appellate Tribunal may defer the hearing of the appeal before it till such revision petition in the High Court or the appeal in the Supreme Court is disposed of.
(5) Notwithstanding that an appeal has been preferred under sub-section (1), tax shall be paid in accordance with the assessment made in the case:
Provided that the Appellate Tribunal may, in its discretion, give such directions as it thinks fit, in regard to the payment of tax, if the appellant furnishes sufficient security to its satisfaction in such form and manner as may be prescribed:
Provided further that if as a result of the appeal any change becomes necessary in such assessment, the Appellate Tribunal may authorise the3 [Assistant Commissioner of Agricultural Income-tax] to amend the assessment, and the3 [Assistant Commissioner of Agricultural Income-tax] shall amend the assessment accordingly, and thereupon, the amount overpaid by the assessee shall be refunded to him without interest, or the additional amount of tax due from him shall be collected in accordance with the provisions of this Act, as the case may be.
(6)(a) The Appellate Tribunal may, on the application either of the assessee or of the3 [Joint Commissioner] review any order passed by it under sub-section (4)on the basis of facts which were not before it when it passed the order:
Provided that no such application shall be preferred more than once in respect of the same order.
(b) The application for review shall be preferred in the prescribed manner within six months from the date on which the order to which the application relates was communicated to the applicant; and where the application is preferred by the assessee, it shall be accompanied by a fee equal to that which had been paid in respect of the appeal:
Provided that if the application for review is preferred within ninety days from the date on which the order to which the application relates is communicated to the applicant, the application shall be accompanied by half the fee which had been paid in respect of the appeal.
(7) The Appellate Tribunal may, at any time within four years from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under this section, and shall make such amendment if the mistake is brought to its notice by the assessee or the3 [Assistant Commissioner of Agricultural Income-tax]:
Provided that an amendment which has the effect of enhancing the assessment or reducing the refund or otherwise increasing the liability of the assessee, shall not be made under this sub-section unless the Appellate Tribunal has given notice to the assessee of its intention to do so and has allowed the assessee a reasonable opportunity of being heard.
(8) Except as provided in the rules made under this Act, the Appellate Tribunal shall not have power to award costs to either of the parties to the appeal or review.
(9) Every order passed by the Appellate Tribunal under sub-section (4), sub-section (6) or sub-section (7) shall be communicated to the assessee, the3 [Joint Commissioner] and the Commissioner.
(10) Every order passed by the Appellate Tribunal under sub-section (4) shall, subject to the provisions of sub-sections (6) and (7), and section 55, be final and every order passed by it under sub-section (6) shall, subject to the provisions of section 55, befinal.]
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1. Substituted by Act 29 of 1963w.e.f. 1.1.1964.
2. Substituted by Act 14 of 1983w.e.f. 1.12.1982.
3. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.
Section 35 - Revision by Additional Commissioner of orders prejudical to revenue
1[35. Revision by2[x x x3[x x]4[Additional Commissioner]] of orders prejudical to revenue
(1) The2[x x x3[x x]4[Additional Commissioner]] may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by any authority subordinate to him is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment.
5[(2) No power shall be exercisable under sub-section (1) after the expiry of four years from the date of order sought to be revised.]
Explanation.- In computing the period of limitation for the purposes of sub-section (2), any period during which any procedding under this section is stayed by an order or injuction of any Court shall be excluded.
(3) Any order passed by the2[x x x3[x x]4[Additional Commissioner]] under this section shall, subject to revision by the High Court under section 55, be final.]
6[Explanation.--For the removal of doubts, it is hereby declared that subject to the provisions of sub-section (2), the revisional power conferred on the2[Joint Commissioner] by sub-section (1) shall be exercisable in respect of an order passed under this Act by any authority subordinate to him before or after the conferment of revisional power on him.]
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1.Substituted by Act 29 of 1963 w.e.f. 1.1.1964.
2.Omitted by Act 5 of 2000 w.e.f. 1.4.2000.
3. Inserted by Act 14 of 1983 w.e.f. 1.12.1982.
4.Substituted by Act 5 of 1993 w.e.f. 9.11.1992.
5.Substituted by Act 23 of 1985 w.e.f. 1.4.1985.
6. Inserted by Act 23 of 1985 w.e.f. 1.1.1964.
Section 35A - Revision by Commissioner of orders pre-judicial to revenue
1[35A. Revision by Commissioner of orders pre-judicial to revenue
(1) The Commissioner may call for and examine the record of any proceedings under this Act, and if he considers that any order passed therein by any authority subordinate to him is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee, an opportunity of being heard and after making or causing to be made such enquiries as he deems necessary, pass such order thereon, as the circumstances of the case justify, including an order enhancing or modifying the assessment, or canceling the assessment and directing a fresh assessment.
(2) No action shall be initiated under sub-section (1), after the expiry of four years from the date of the order sought to be revised.
(3) Any order passed by the Commissioner under this section shall, subject to revision by the High court under section 55, be final.]
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1. Inserted by Act 5 of 2000 w.e.f. 1.4.2000.
Section 36 - Income escaping assessment
36. Income escaping assessment
If for any reason any agricultural income chargeable to tax under this Act has escaped assessment in any financial year or has been assessed at too low a rate, the1 [Assistant Commissioner of Agricultural Income-tax], may, 2 [at any time within fiveyears] of the end of that year serve on the person liable to pay the tax or in the case of a company on the principal officer thereof, a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 18 and may proceed to assess or re-assess such income and the provisions of this Act shall, so far as may be, apply accordingly as if 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 such income had not escaped assessment or full assessment as the case may be.
3 [Provided further that in computing the period of limitation for assessment or re-assessment under this section, the time during which the assessment has been deferred on account of any stay order granted by any court or other authority in any case or by reason of the fact that an appeal or other proceeding is pending before the High Court or the Supreme Court, shall be excluded:
Provided also that nothing contained in this section limiting the time within which any action may be taken or any order, assessment or re-assessment may be made, shall apply to an assessment or re-assessment made on the assessee or any person in consequence of, or to give effect to, any finding, direction or order made under section 32,4 [32A,] 33, 5 [34,] 35 or 55 or any judgment, or order made by the Supreme Court, the High Court or any otherCourt.]
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1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.
2. Substituted by Act 10 of 1987w.e.f. 1.4.1987.
3. Inserted by Act 25 of 1962w.e.f. 1.10.1957.
4. Substituted by Act 14 of 1983w.e.f. 1.12.1982.
5. Inserted by Act 29 of 1963w.e.f. 1.1.1964.
Section 37 - Rectification of mistakes
1[37. Rectification of mistakes
(1) With a view to rectifying any mistake apparent from the record, the assessing authority, appellate authority or revising authority may, at any time within five years from the date of an order passed by it, amend such order:
Provided that an amendment which has the effect of enhancing an assessment or otherwise increasing the liability of the assessee shall not be made unless the assessing authority, appellate authority or revising authority, as the case may be, has given notice to the assessee of its intention to do so and has allowed the assessee a reasonable opportunity of being heard.
(2) Where an order has been considered and decided in any proceedings by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided.
(3) An order passed under sub-section (1), shall be deemed to be an order passed under the same provision of law under which the original order, the mistake in which was rectified, had been passed.]
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1. Substituted by Act 38 of 1986 w.e.f. 17.10.1986.
Section 38 - Power to take evidence on oath, etc.
The Commissioner, 1 [Joint Commissioner,] and the 1 [Assistant Commissioner of Agricultural Income-tax] shall, for the purposes of this Chapter, have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 (Central Act V of 1908), when trying a suit, in respect of the following matters, namely:--
(a) enforcing the attendance of any person and examining him on oath or affirmation;
(b) compelling the production of documents; and
(c) issuing commissions for the examination of witnesses; and any proceeding before the Commissioner, 2 [1 [Additional Commissioner]] 1 [Joint Commissioner] or 1 [Assistant Commissioner of Agricultural Income-tax] shall be deemed to be a "Judicial proceeding" within the meaning of sections 193 and 228 and for the purposes of section 196 of the Indian Penal Code (Central Act XLV of 1860).
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1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.
2. Inserted by Act 14 of 1983 w.e.f. 1.12.1982.
Section 39 - Power to call for information
The1[Assistant Commissioner of Agricultural Income-tax] or the1[Joint Commissioner] may for the purposes of this Act,--
(i) require any firm to furnish a return of the names of all the members of the firm, their addresses and such other particulars as may be required for the purposes of assessment;
(ii) require any person whom he has reason to believe to be a trustee, guardian or agent, to furnish him with a return of the names of the persons for or of whom he is trustee, guardian or agent and of their addresses.
2[(iii) require any coffee curing works to furnish such particulars as he may require in respect of the transaction of any assessee with such coffee curing works.]
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1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.
2. Inserted by Act 38 of 1986 w.e.f. 17.10.1986.
Section 40 - Assessee not to recover rent in excess of that mentioned in rents-roll, etc.
(1) If for the purpose of calculating or verifying the agricultural income specified in a return under section 18, the assessee produces before any Agricultural Income-tax Authority any rent-roll or other document showing the amount of rent due to him, he shall not be entitled to recover by suit or otherwise rent in respect of any tenure or holding included in his return at a rate higher than that mentioned in such rent-roll or document in respect of such tenure or holding, unless the rent thereof has, since the date of the return, been lawfully enhanced.
(2) Any person who has produced a rent-roll or other document referred to in sub-section (1) may, within one year of producing such rent-roll or document, apply to the1[Assistant Commissioner of Agricultural Income-tax] to make any correction therein and such officer may, if he is satisfied that there has been a bona fide mistake, pass an order correcting such rent-roll or document.
(3) Where the1[Assistant Commissioner of Agricultural Income-tax] passes an order under sub-section (2), he may assess under section 36 any income escaping assessment by reason of the original incorrectness of the entry corrected.
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1. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.