In the return it was stated that the income was half of the income received from the partnership firm, the Agricultural Company, Rampur.
2385 of 1959.
1724 of 1969 to this Court and on the leave being granted this appeal is number before us.
On 17th April, 1961 the writ petition was allowed and the order of assessment was quashed with a direction that fresh assessments may be made.
2281 of 1969 Appeal by Special Leave from the Judgment and Order dated 6th December, 1965 of the Allahabad High Court in Special Appeal No.
1982 of 1962 in the High Court of Judicature at Allahabad and prayed for the quashing of the assessment order dated 29th June, 1962, made by the Assessing Authority against the Raza Ltd. and the Buland Ltd. for the assessment years 1357 F to 1363 F. The writ petition was heard by a single Judge of the High Court who by his order dated 4th October, 1962 allowed the writ petition on the ground that the Assessing Authority companymitted an error of law in assessing the two partners of the Agricultural Company, Rampur, and number assessing the firm as such.
978 of 1962 before the Division Bench of the High Court at Allahabad.
Aggrieved by the order the State filed Special Appeal No.
The Rampur State had agreed to exempt the Raza Ltd. and the Buland Ltd. from all taxes for a period of 15 years from the date of companymencement of their business.
Messrs. Govan Brothers Rampur Ltd. were the companymon managing agents of the two companypanies.
This companytention was accepted by the High Court which directed the Assessing Authority to determine the question whether the lands were assessed to land revenue, in the United Provinces or they were subject to local rate or cess assessed and companylected by an officer as required under section 2 a of the U.P. Agricultural Income Tax Act, 1948.
The Assessing Authority negatived the plea and assessed the Raza Ltd. and the Buland Ltd. for the years 1357 F to 1361 F and also for the years 1362 F to 1363 F. Against the order of the Assessing Authority the two companypanies which in the meantime became amalgamated as the Raza Buland Sugar Co. Ltd., Rampur, filed a writ petition No.
2385 of 1959 in the High Court of Allahabad challenging the assessment orders.
The agreements provided that the Rampur State should grant to the companypanies leases of the agricultural land with adequate irrigation facilities suitable for cultivation of sugar cane.
The Assessing Authority assessed the two companypanies to agricultural income tax for the years companycerned.
An application for leave to appeal to the Supreme Court was dismissed by the High Court.
Shiv Pujan Singh and M. V. Goswami for the Appellant.
The Commissioner also directed the Assessing Authority to make fresh assessments in the light of the observations made by the High Court in its judgment dated 17th April, 1961, allowing the writ petition No.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
After remand the Assessing Authority found that the lands from which the income accrued satisfied the requirements of the section.
On 5th May, 1935, a partnership deed was a executed by the Raza Ltd. and the Buland Ltd. companystituting a partnership firm of the two companypanies in equal shares known as the Agricultural Company, Rampur.
Two companypanies, the Raza Sugar Co. Ltd. and the Buland Sugar Co. Ltd., were incorporated under the Rampur State Companies Act, 1932.
The Raza Ltd. and the Buland Ltd. submitted their returns.
For the first time before the Assessing Authority the point was raised that as numbernotice was issued to the partnership firm, the partners i.e. two companypanies cannot be proceeded with for assessment of the tax.
The Judgment of the Court was delivered by KAILASAM, J. This appeal is by the State of U.P. by special leave granted by this Court against the judgment and order of the High Court at Allahabad in Special Appeal No.
On 10th May, 1933 the Raza Ltd. and on 11th December, 1934, the Buland Ltd. entered into agreements with the erstwhile State of Rampur.
978/62.
The Assessing Authority issued numberices under section 16 4 of the U.P. Agricultural Income Tax Act to the Raza Ltd. and the Buland Ltd. for furnishing returns of their agricultural incomes for the years 1357 F to 1361 F. It may be numbered that the numberice was number issued to the Agricultural Company, Rampur.
The relevant provisions under the United Provinces Agricultural Income Tax Act, 1948, may be numbericed.
The companypanies were required to pay fair and equitable land revenue which was to be agreed upon by the company panies and the Rampur State.
P. Maheshwari and Suresh Sethi for the Respondent.
The companypanies preferred an appeal against the assessment to the Commissioner, Rohikhand Division, and also filed writ petition No.
978 of 1962.
The U.P. Agricultural Income Tax Act was applied to the areas which formed part of the erstwhile State of Rampur on Ist July, 1950.
When this plea was rejected by the Assessing Authority the matter was taken up before the High Court, first before a single Judge and then before the Division Bench, which accepted the companytention of the two companypanies and held that in the absence of numberice to the partnership firm proceedings cannot be taken against the two companypanies for assessment of the tax.
In 1949 the State of Rampur acceded to the Union of India and was merged with the State of Uttar Pradesh with effect from Ist December, 1949.
In the year 1939 the Rampur State leased 2,000 acres of land and in the year 1946 another 2,000 acres of land to the Agricultural Company, Rampur.
The assessment was made on the basis of the returns.
The appellants then preferred Special Leave Petition No.
When the Assessing Authority started fresh hearing in pursuance of the order of the High Court an objection was raised with regard to the assessability of the two companypanies on the ground that numbernotice had been sent to the Agricultural Company, Rampur.
The Division Bench of the High Court by its order dated 6th December, 1965, dismissed the Special Appeal.
The assessment was questioned before the Commissioner and in the writ petition before the High Court of Allahabad on the ground that the lands were neither assessed to land revenue in the United Provinces number were they subject to local rate or cess assessed and companylected by an officer of the Provincial Government.
