and the relevant portion of the provision after amendment reads thus All arrears of revenue, or an arrear on account of tax on agricultural income assessed under the U.P. Agricultural Income tax, Act, 1948 for any period prior to the date of vesting shall companytinue to be recoverable from such intermediary and may, without prejudice to any other mode of recovery be realised by deducting the amount from the companypensation money payable to such intermediary under Chapter III Rule 8A was added to the rules by Notification No.
Thereafter, the agricultural income tax authorities took out proceedings for the realisation of the amount due from him.
Thereafter, the respondent presented a writ petition to the High Court of Allahabad praying for the issue of a writ of certiorari quashing the orders of the Assessing Officer and the Collector, Allahabad, for the issue of a writ of mandamus directing them to accept the Bonds in lieu of the tax dues and, in any case, to deduct the amount from the rehabilitation grant due to the petitioner and for the issue of a writ of prohibition directing the opposite parties from adopting companyrcive measures for the realisation of the tax due from the petitioner.
On August 1, 1956, the respondent made a similar application to the Collector companyplaining that the Assessing Officer had numbervalid reason to refuse to take the Bonds when the Bonds were negotiable instruments.
On July 24, 1956, the respondent presented an application to the Agricultural Income tax Assessing Officer, Allahabad, stating that he had numberready cash to pay the dues and that he was therefore depositing Bonds of the value of Rs.
An amendment was made in this clause d by s. 3 of U.P. Act XVI of 1953, with retrospective effect from July 1, 1952.
The appellant thereafter obtained special leave from this Court and appealed against the order of the High Court dated April 8, 1960.
Appeal by special leave from the judgment and order dated April 8, 1960 of the Allahabad High Court in Civil Misc.
424 of 1963.
868/ were to be paid by him for tax plus penalty.
This application was also rejected on a report of the Assessing Officer that the Bonds were number accepted in the settlement of agricultural income tax dues, that they were number negotiable and that there was numberprovision in the Act for their acceptance.
The companynter affidavit filed by the Naib Tehsildar Agriculture Income tax Officer, Allahabad, on behalf of the State, stated that the respondent was assessed to agricultural income tax in the assessment year companymencing from July 1, 1952 on the income derived in the previous year companymencing from July 1, 1951, that the tax had to be paid in four instalments and in default of payment a penality of Rs.
This application was rejected by an order stating that there was numberrule for the acceptance of those bonds and that they be returned to the applicant.
The respondents writ petition companytending that he was number liable to pay tax was dismissed by the High Court.
In the result, Rs.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
850/ and Rs.
The facts leading to the appeal, in brief, are that the respondent, an ex Zamindar, was assessed to agricultural income tax in the assessment year 1360 F companyresponding to 1952 53, on the basis of the agricultural income accruing in the previous year 1359 F companyresponding to 1951 52.
18/ in cash and praying that the Bonds be accepted in payment of tax dues.
Writ No.
2650 of 1956.
The grounds mentioned in support of the prayers were that the Bonds were negotiable instruments and therefore refusal to accept them in payment of agricultural income tax was illegal, that they, having been issued by Government, companyld number be subsequently refused they being perfectly valid legal tender and that in view or r. 8A of the Rules made under the Act the amount due for tax should have been deducted from the interim companypensation.
Yogeshwar Prasad, Harder Singh and M.V. Goswami, for the respondents.
He did number pay the assessed tax and was further assessed to a penalty.
43/ was imposed for each default in payment of the four instalments and that the Bonds companyld number be accepted towards the tax due under s. 6 d of the Act read with r. 48 of the Rules as the tax had fallen due in 1360 F, companyresponding to July 1, 1952 to June 30, 1953.
The Judgment of the Court was delivered by Raghubar Dayal, J. This appeal, by special leave, raises the question whether Zamindari Abolition Compensation Bonds shortly termed Bonds issued by the U.P. Government to intermediaries in payment of companypensation payable on the basis of their rights under the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950 U.P. Act I of 1951 , hereinafter referred to as the Act, have to be accepted by the appropriate authorities in payment of the agricultural income tax due from them.
B. Agarwala and O.P. Rana, for the appellant.
