KAIT Act 55Chapter VIII · Liability In Special Cases

Section 55 · Assessment when title to the property is disputed

(1)

When title to any property from which agricultural income is derived or liable pay tax under this Act is under dispute, whether any suit to decide the issue is pending in any court or not, the agricultural income from such property is assessable on the person who holds the property or who derives the income therefrom including any Administrator or official receiver.

(2)

In computing the agricultural income for the purposes of subsection (1) the aggregate of agricultural income of either, party to the suit or who claim the title to the property whichever is higher, shall be included in it tax shall be calculated on this aggregate agricultural income and after deducting the tax already demanded from the person whose agricultural income was so included, the balance tax shall be assessed on the person who holds the property or derives agricultural income therefrom.

(3)

Any person who holds any property in dispute and derives agricultural income therefrom including any administrator or official receiver shall pay the tax due under the Act in accordance with the provisions of this Act and shall be recoverable from him without prejudice to any other mode of recovery as if it were a tax imposed on him.

(4)

The Agricultural Income tax Officer may review any order passed under this section, when the dispute over the property, is finally settled and re-determine the tax within four years from the, date of such final settlement in accordance with the provisions of this Act.

(5)

If as a result of any order passed under sub-section (4) above, any amount is found due, it shall be demanded from the person in whose favour the final settlement of the dispute is made and shall together with any amount of tax due to be recovered from him or from the properties in accordance with the provisions of this Act.

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