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The Maharashtra Agricultural Income Tax Act, 1962

Maharashtra Act No. 41 of 1962

mh563

Chapter I

Preliminary

(a) any rent or revenue derived from land which is used for agricultural purposes and is either assessed to land revenue in the State or is subject to a local rate assessed and collected by the officers of the Government as such;

(b) any income derived from such land by -

(i) agriculture, or

(ii) the performance by a cultivator or receiver of rent-in-kind of any process ordinarily employed by a cultivator or receiver of rent-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, in respect of which no process has been performed other than a process of the nature described in paragraph (ii) of this sub-clause;

(c) any income derived from any building [owned and occupied] by the receiver of the rent or revenue of any such land, or occupied by the cultivator or the receiver of [rent-in-kind of any land] with respect to which, or the produce of which, any process mentioned in paragraphs (ii) and (iii) of sub-clause (b) is carried on :

(a) every person in respect of whom any proceeding under this Act has been taken for the assessment of his agricultural income or the agricultural income of any other person in respect of which he is assessable;

(b) every person who is deemed to be an assessee under any provision of this Act;

(a) an individual,

(b) a Hindu undivided family,

(c) a company,

(d) a firm,

(e) an association of persons or a body of individuals, whether incorporated or not, and

(f) every artificial juridical person, not falling within any of the preceding sub-clauses;

(a) the secretary, treasurer, manager or agent of the company, association or body, or

(b) any person connected with the management or administration of the company, association or body upon whom an Agricultural Income-tax Officer has served a notice of his intention of treating him as the principal officer thereof;

(a) receipt by an agent or servant on behalf of a principal or master, respectively,

(b) receipts by other persons which are deemed to be his receipts under the provisions of this Act, and also includes receipts of agricultural income by way of adjustment of accounts with any other person;

(a) in the case of works constructed or assets acquired in the previous year, the actual cost to the assessee,

(b) in the case of works constructed or assets acquired before the previous year, the actual cost to the assessee less all depreciation allowable to him under this Act in respect of such work, machinery, plant or other asset, as the case may be.

(a) the financial year immediately preceding the year of assessment; or

(b) if the accounts of the assessee have been made up to a date within the said financial year then, at the option of the assessee, the twelve months ending on such date; or

(c) in the case of any person or business or class of persons or business not falling within clause (a) or clause (b), such period as may be determined by the Commissioner in this behalf; or

(d) in the case of a business newly set up in the said financial year, the period beginning with the date of the setting up of such business; and

(i) ending with the said financial year, or

(ii) if the accounts of the assessee have been made up to a date within the said financial year, then, at the option of the assessee, ending on that date, or

(iii) ending with the period, if any, determined under clause (c), as the case may be; or

(e) in the case of a business newly set up in the twelve months immediately preceding the said financial year -

(i) if the accounts of the assessee have been made up to the date within the said financial year and the period from the date of the setting up of the business to such date does not exceed twelve months, then, at the option of the assessee, such period, or

(ii) if any period has been determined under clause (c), then, the period beginning with the date of the setting up of the business and ending with that period, as the case may be; or

(f) where the assessee is a partner in a firm and the firm has been assessed as such, then, in respect of the assessee's share in the agricultural income of the firm, the period determined as the previous year for the assessment of the agricultural income of the firm.

Chapter II

Charge of Agricultural Income-Tax

(a) any agricultural income derived from land situated outside the State; or

(b) any agricultural income derived from property held under trust or other legal obligation wholly for religious or charitable purposes; and in the case of property so held in part only for such purposes or in the case of any wakf, the income applied thereto.

Notes. - "It defines total agricultural income as all agricultural income derived from land situated within the State whether the income is received, within or without the State, including any land revenue or any local or education cess payable in respect of such land, excluding any agricultural income derived from (i) land situated outside the State, and (ii) property held under trust or other legal obligation for religious or charitable purposes".

Chapter III

Computation of Agricultural Income-tax and Allowances

(a) Agricultural Income from Rent or Revenue (being agricultural income) as defined in sub-clauses (a) and (c) of clause (1) of section 2;

(b) Agricultural Income from Agriculture (being agricultural income) as defined in sub-clause (b) of clause (1) of section 2.

(1) the expenditure incurred by the assessee in the previous year -

(a) in cultivating such land;

(b) in performing any process contemplated in item (ii) of sub-clause (b) of clause (1) of section 2 for rendering the produce of such land fit to be taken to market;

(c) in transporting such produce;

(d) in maintaining agricultural implements and machinery in good repair and in providing for the up-keep of cattle for the purpose of such cultivation, process or transport;

(2) any sum paid by him in the previous year in respect of such land on account of -

(a) land revenue or rent,

(b) any local rate or cess (including any education cess) in respect of such land;

(3) any sum paid by him in the previous year as interest on any loan taken by him, for raising the agricultural produce of such land, for rendering such produce fit to be taken to the market, or for transporting such produce to market;

(4) where his interest in such land is subject to a mortgage or other capital charge, the amount of any interest paid by him in the previous year in respect of such mortgage or charge, and where such land has been acquired, reclaimed or improved by him by the use of borrowed capital, the amount of any interest paid by him in the previous year in respect of such capital :

(5) any sum paid by him in the previous year on account of the maintenance of any irrigation or protective work or other capital asset for the benefit of the land from which such agricultural income is derived.

(6) depreciation at such rate as may be prescribed, in respect of any irrigation or protective work or other capital asset (including machinery or plant) constructed or acquired 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;

(7) in respect of any machinery or plant used exclusively for agricultural purposes which has been sold or discarded, the amount by which the written down value, of the machinery or plant exceeds the amount for which the machinery or plant is actually sold or its scrap value :

(8) any sum paid by him in the previous year as premium in order to effect any insurance against loss of, or damage to, such land or any crops to be raised or any cattle to be reared thereon;

(9) any other expenditure of the assessee (not being in the nature of capital expenditure or personal expenditure) laid out wholly and exclusively for the purpose of deriving agricultural income from such land;

(10) any other sum which may be prescribed.

(a) where for the purposes of the assessment of income-tax under the Income-tax Act, the market value of the said produce has been determined, the market value as so determined, shall be taken to be the market value for the purposes of this subsection;

(b) where there is any common charge on both agricultural income assessable under this Act and income chargeable under the Income-tax Act, and such charge is an allowance permissible both under this Act and the Income-tax Act, then, if for the purpose of the Income-tax Act, the part of such charge which is to be deemed to be the allowance permissible under that Act has been determined under that Act, the remaining part of such charge shall be deemed to be the allowance to which agricultural income assessable under this Act is subject.

Notes. - This section deals with the computation of allowances where lands extend beyond the State. It provides that the allowance will be calculated as such proportion to the common payment on the agricultural income derived from the, and within the State bears to the agricultural income derived from all the land both within and without the State in respect of which common payment is made.

(a) so much of the total agricultural income of a spouse or minor child of such individual as arises directly or indirectly -

(i) from assets transferred directly or indirectly to the spouse by such individual otherwise than for adequate consideration or in connection with an agreement to live apart,

(ii) from assets transferred directly or indirectly to the minor child, not being a married daughter, by such individual, otherwise than for adequate consideration;

(b) so much of the total agricultural income of any person or association of persons as arises from assets transferred, otherwise than for adequate consideration to the persons or association by such individual for the benefit of his or her spouse or minor child or both.

Chapter IV

Liability to Assessment in Special Cases

(a) as a guardian, trustee or agent of any person being a minor, lunatic or idiot or person residing without the State interested in such land or the agricultural income derived therefrom; or

(b) as a receiver or administrator appointed by or under the order of any Court in respect of such land or the agricultural income derived therefrom, any agricultural income-tax payable under this Act, on such income shall be levied upon and recoverable from such guardian, trustee, agent, receiver or administrator in like manner and to the same amount as would be leviable upon and recoverable from any such person if in direct receipt of such agricultural income; and such guardian, trustee, agent, receiver or administrator shall be deemed to be the assessee in respect of the agricultural income-tax so payable by such minor, lunatic, idiot or person residing without the state or other person, as the case may be, and all the provisions of this Act shall apply accordingly.

Chapter V

Agricultural Income-tax Authorities and Tribunal

(a) Deputy Commissioners,

(b) Assistant Commissioners,

(c) Agricultural Income-tax Officers, and

(d) other officers and persons, and give them such designations (if any), as that Government thinks necessary.

Chapter VI

Procedure for Assessment

(a) fails to make a return required by any notice given under sub-section (2) of section 22, and has not made a return or a revised return under sub-section (3) of that section, or

(b) fails to comply with all the terms of a notice issued under subsection (5) of section 22, or

(c) having made a return, fails to comply with all the terms of a notice issued under sub-section (2) of this section, or

(d) fails to produce before the Agricultural Income-tax Officer any order under the Income-tax Act or a certified copy thereof which may be necessary under the provisions of this Act for the purpose of enabling any assessment to be made under section 9, such officer shall make the assessment to the best of his judgement, and determine the sum payable by the assessee on the basis of such assessment.

(a) has without reasonable cause or excuse failed to furnish a return of his total agricultural income which he was required to furnish by a notice given under sub-section (1) or sub-section (2) of section 22 or section 41 or has without reasonable cause or excuse failed to furnish it within the time allowed and in the manner required by such notice; or

(b) has without reasonable cause or excuse failed to comply with a notice under sub-section (5) of section 22 or sub-section (2) of section 23; or

(c) has concealed the particulars of his agricultural income or deliberately furnished inaccurate particulars of such income, he or it, as the case may be, may direct that such person shall pay by way of penalty, in the case referred to in clause (a), in addition to the amount of the agricultural income-tax payable by him, a sum not exceeding that amount, and in the cases referred to in clauses (b) and (c), in addition to any agricultural income-tax payable by him, a sum not exceeding the amount of the agricultural income-tax which would have been avoided if the income as returned by such person had been accepted as the correct agricultural income :

Notes. This section provides for penalty for concealment of income of a sum not exceeding the amount of the tax which would have been avoided if the income as returned by the assessee had been accepted as correct agricultural income. It also provides that in cases where penalty has been imposed no prosecution for an offence shall be instituted in respect of the same facts.

(a) in the case of an order of assessment -

(i) confirm, reduce, enhance or annul the assessment; or

(ii) set aside the assessment and direct the Agricultural Income-tax Officer to make a fresh assessment after making such further inquiry as the Agricultural Income-tax Officer thinks fit or the Assistant Commissioner may direct, and the Agricultural Income-tax Officer shall thereupon proceed to make such fresh assessment and determine where necessary the amount of agricultural income-tax payable on the basis of such fresh assessment; or

(b) in the case of an order under section 53, or section 56 confirm, cancel or vary such order; or

(c) in the case of an order under sub-section (1) of section 27, confirm such order or cancel it and either direct the Agricultural Income-tax Officer to make further inquiry and pass a fresh order to make an assessment in the manner laid down in sub-section (2) of section 27; or

(d) in the case of an order under section 29 or sub-section (1) of section 50; confirm or cancel such order or vary it so as either to enhance or reduce the penalty :

(a) where an appeal against the order lies to the Assistant Commissioner or to the Tribunal, the time within which such: appeal may be made has not expired; or

(b) the order is pending on an appeal before the Assistant Commissioner or has been made the subject of an appeal to the Tribunal; or

(c) the order has been made more than two years previously.

(a) where an appeal against the order lies to the Assistant Commissioner or to the Tribunal but has not been made, or the time within which such appeal may be made has not expired; or

(b) where an appeal against the order has been made to the Assistant Commissioner, the appeal is pending before the Assistant Commissioner; or

(c) the order has been made the subject of an appeal to the Tribunal.

(1) a notice issued under this Act calling upon an assessee for assessment or asking an assessee to show cause as to why he should not be prosecuted for an offence under this Act, or

(2) an order pertaining to the seizure or retention of account books, registers and other documents, or

(3) an order sanctioning a prosecution under this Act.

Notes. - According to the provisions of section 40 if any case is referred to the High Court the Bench of two-Judges of High Court has to hear the case. High Court can refer the case to the Supreme Court only when the case comes under section 39 of the Act.

(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 an Agricultural Income-tax Officer, Assistant Commissioner or the Tribunal under this Chapter or before the Commissioner under section 34, 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.

(1) require any firm or Hindu undivided family to furnish him with a return of the members of the firm or of the manager or adult male members of the family, as the case may be, and of their addresses;

(2) require any person whom he has reason to believe to be a trustee, guardian, Common manager or agent to furnish him with a return of the names of the persons for or of whom he is trustee, guardian, common manager, or agent, and of their addresses.

(1) The Commissioner may, subject to such conditions as may be prescribed require any assessee to produce before him any accounts or documents or to furnish any information, relating to stocks of any agricultural produce raised or received by him or relating to sales or deliveries of such produce or any other information relating to his business from which any agricultural income is received by him, as may be necessary for the purposes of this Act.

(2) All accounts, registers and documents relating to stocks of any agricultural produce raised or received by him or relating to sales or deliveries of such produce or to the business aforesaid shall at all reasonable times be open to inspection by the Commissioner, and the Commissioner may take or cause to be taken such copies or extracts therefrom as appear to him necessary for the purposes of this Act.

(3) If the Commissioner has reason to believe that any assessee has evaded or is attempting to evade the payment of any agricultural income-tax due from him, he may, for reasons to be recorded in writing, seize such accounts, registers or documents of the assessee as may be necessary, and shall grant a receipt for the same, and shall retain the same for so long as may be necessary in connection with any proceeding under this Act or for a prosecution.

(4) For the purposes of sub-section (2) or sub-section (3), the Commissioner may enter and search any place of business of any assessee, or any other place where the Commissioner has reason to believe that the assessee keeps or is for the time being keeping any accounts, registers or documents referred to in sub-section (2).

Chapter VII

Recovery of Tax and Penalties

Notes. - This section inter alia provides for the recovery of the tax. The amount payable under section 30 must be paid within the time and at the place mentioned in the notice or order. If the time is not indicated then the amount should be paid on or before the first day of second month, following the date of the service of the notice or order and any assessee failing to pay shall be deemed to be in default. Payment in instalment of tax is allowed if the assessee makes an application within the time mentioned in notice of demand.

(a) the last date on which the tax is payable without the assessee being deemed to be in default, or

(b) the date on which the last instalment fixed under sub-section (2) of section 49 falls due, or

(c) the date on which any appeal relating to the payment of the tax has been disposed of, whichever is the later.

Notes. - Under the provisions of this section if an assessee do not pay the whole or extra amount of tax the Agricultural Income- tax Officer, in addition to the amount of arrears, may recover a sum not exceeding half that amount from the assessee. The assessee will be given reasonable opportunity of being heard before being levied. The time limit after which proceeding cannot be commenced is also provided in this section.

(a) any person from whom any amount of money is due, or may become due, to an assessee on whom a notice of demand has been served under section 30, or

(b) any person who holds or may subsequently hold money for or on account of such assessee, to pay to the Commissioner, either forthwith upon the money becoming due or being held or at or within the time specified in the notice (but not before the money becomes due or is held as aforesaid), so much of the money as is sufficient to pay the amount due by the assessee in respect of which a notice of demand has been so issued or the whole of the money when it is equal to or less than that amount.

Chapter VIII

Refunds

Chapter IX

Offences and Penalties

(a) to furnish in due time any of the returns mentioned in section 22 or section 44,

(b) to produce or cause to be produced, on or before the last date allowed by the Agricultural Income-tax Officer under subsection (5) of section 22 or the date mentioned in the notice under the said sub-section, whichever is the later, such accounts, or documents as are referred to in the notice,

(c) to grant inspection to allow copies to be taken in accordance with the provisions of section 45,

(d) to keep true account of the agricultural produce raised or received by him as required by section 46, or when directed so to do under that section to keep any account or record in accordance with the direction; or

(ii) if a person -

(a) fails to comply with any requirement made of him under section 47,

(b) knowingly produces incorrect accounts, registers or documents or knowingly furnishes incorrect information,

(c) obstructs any officer making an inspection, search or seizure under section 47; or

(iii) if a person aids or abets any other person in the commission of any act specified in any of the sub-clauses of clause (i) or of clause (ii), he shall, on conviction, be punished with simple imprisonment which may extend to six months or with fine not exceeding two thousand rupees or with both.

Notes. - This section provides that if a person fails to comply with statutory obligations such as furnishing returns, producing document or keeping true accounts or obstruct, any officer making inspection he shall on conviction be punished with simple imprisonment which may extend to six months or with fine not exceeding two thousand rupees or with both. It also lays down that for continued offence after the first day of conviction, he shall be fined with daily fine not exceeding one hundred rupees.

(a) of any such particulars in respect of any such statement, return, accounts, documents, evidence, affidavit or deposition for the purpose of any prosecution under the Indian Penal Code or the Prevention of Corruption Act, 1947, or the Defence of India Ordinance, 1962 or any rules or orders made thereunder or for carrying into effect the provisions of this Act; or

(b) of any such particulars to the State Government or to any person acting in the execution of this Act for the purposes of carrying out the object of this Act; or

(c) of any such particulars when such disclosure is occasioned by the lawful employment under this Act of any process for the service of any notice or the recovery of any demand; or

(d) of any such particulars to a Civil Court in any suit, to which the Government is a party, which relates to any matter arising out of any proceedings under this Act; or

(e) of any such particulars to any officer appointed to audit receipts or refunds of the agricultural income-tax imposed under this Act; or

(f) of any such particulars where such particulars are relevant in any inquiry into the conduct of an official of the Agricultural Income-tax Department to any person or persons appointed Commissioners under the Public Servants (Inquiries) Act, 1850, or to any officer otherwise appointed to hold such inquiry or to a Public Service Commission established under the Constitution when exercising its function in relation to any matter arising out of such inquiry; or

(g) of such facts to an officer of the Central Government or a State Government as may be necessary for the purpose of enabling that Government to levy or realise any tax or duty imposed by it; or

(h) of any such particulars when such disclosure is occasioned by the lawful exercise by a public servant of his powers under the Bombay Stamp Act, 1958 or the Indian Stamp Act, 1899, to impound an insufficiently stamped document; or

(i) of any such particulars where such particulars are relevant to any inquiry into a charge of misconduct in connection with agricultural income-tax proceedings against a legal practitioner, agricultural income-tax practitioner or chartered accountant, to the authority empowered to take disciplinary action against members practising the profession of a legal practitioner, agricultural income-tax practitioner or chartered accountant, as the case may be.

(a) wilfully refuses or without lawful excuse neglects to furnish such information or return as may by that section be required; or

(b) wilfully furnishes or causes to be furnished any information or return which he knows to be false;

(a) 'company' means a body corporate and includes a firm or any association of persons or body of individuals; and

(b) 'director' in relation to a firm means a partner in the firm.

Chapter X

Miscellaneous

(a) by a person authorised by him in writing in this behalf, being a relative or a person regularly employed by him; or

(b) by a legal practitioner or chartered accountant, who is not disqualified by or under sub-section (2); or

(c) by an agricultural income-tax practitioner who possesses the prescribed qualifications and is entered in the list which the Commissioner shall maintain in that behalf, and who is not disqualified by or under sub-section (2).

(i) who has been removed or dismissed from Government service, or

(ii) who being a legal practitioner or chartered accountant is found guilty of misconduct in connection with any proceedings under this Act by an authority empowered to take disciplinary action against the members of the profession to which he belongs, or

(iii) who being an agricultural income-tax practitioner is found guilty of such misconduct by the Commissioner.

(a) in the case of a firm or a Hindu undivided family be addressed to any member of the firm or to the manager of the family; and

(b) in the case of company or any other association of individuals or body of persons be addressed to the principal officer thereof.

(a) prescribe in accordance with the provisions of this Act the manner of ascertainment and determination of agricultural income;

(b) prescribe the procedure to be followed on application for refunds allowable under this Act;

[(ba) provide for fees not exceeding fifty naye paise payable (in court-fee stamps) in respect of an application for a certified copy of any order passed or any document produced or filed in any proceedings, under this Act;]

(c) provide for any matter which by this Act is to be prescribed.

Notifications

Schedule