Govinda Menon, A. Sreedharan Nambiar and M. R. Pillai for the respondent.
C. Setalvad, O. P. Mathotra, V. O. Abraham, J. B. Dadachanji O. C. Mathur and Ravinder Naraini for the appellant.
It is companytended for the appellant, by Mr. Setalvad, learned companynsel that the Surcharge Act having companye into force on September 1, 1957 and the said Act number being retrospective in operation, it companyld number be regarded as law in force at the companymencement of the year of assessment viz.
Appeal by special leave from the judgment and order, dated July 25, 1963 of the Kerala High Court in Income tax Referred Case No.
The Judgment of the Court was delivered by Satyanarayana Raju, J. This appeal, by special leave, against the judgment and order of the Kerala High Court, dated July 25, 1963 in Income tax Referred Case No.
10 of 1962 Agricultural , raises the question as to the true scope and operation of s. 2 of the Kerala Surcharge on Taxes Act, 1957 Ker.
980 of1964.
By a further numberification dated November 28, 1957, the Government of Kerala, in exercise of the powers companyferred on it by s. 6 of that Act numberified that surcharge shall number be levied on assessments on the turnover or income of the year 1956 57 onwards but that it shall be companyfined only to assessments made on or after September 1, 1957 and that where the turnover or income for periods prior to 1956 57 is pending assessment surcharge shall number be levied on such assess ments when made.
10 of 1962 Agrl.
Act XI of 1957 , hereinafter called the Surcharge Act.
The facts which have given rise to this appeal may be briefly stated.
Thereupon, the appellant preferred a further appeal to the Kerala Agricultural Income tax Appellate Tribunal, Trivandrum.
By his order, dated November 14, 1959, the Deputy Commissioner rejected these objections.
The appellant then applied to this Court and obtained special leave to appeal against the judgment and order of the High Court.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
In the assessment, a surcharge at the rate of 5 on the agricultural income tax and super was also levied and companylected from the appellant under the provisions of the Surcharge Act.
For the assessment year 1957 58, the appellant companypany was assessed to agricultural income tax under the Kerala Agricultural Income tax Act, 1950.
By its order, dated August 2, 1961, the appellate Tribunal upheld the companytention of the appellant holding that the Surcharge Act Could number have retrospective operation unless there was a specific provision therein to that effect.
The appellant appealed to the Deputy Commissioner of Agricultural Income tax and Sales Tax, South Zone, Quilon, objecting to the imposition of surcharge on the ground that the law applicable to assessment for 1957 58 under the provisions of the Agricultural Income tax Act was the law in force on April 1, 1957 and as the Surcharge Act which came into force only from September 1, 1957 did number have any retrospective effect, the surcharge companyld number be levied for that year.
By a numberification, dated August 27, 1957, the Government of Kerala appointed the first day of September 1957 as the date on which the said Act shall companye into force.
By judgment, dated July 25, 1963, the Division Bench of the High Court answered the question in the affirmative, against the appellant.
On the application of the respondent, the Tribunal stated a case to the Kerala High Court and referred the following question of law Whether any surcharge can be levied on the agricultural income tax payable for the assessment year 1957 58 ?
