Broad meaning of "individual" in wealth tax sustains assessment of a registered trade-union association, with exemption claim remanded.

A registered trade-union association was treated as an "individual" for wealth-tax purposes because the charging provision in section 3 was construed broadly to cover a juristic person forming a distinct unit. Exemption under section 5(1)(i) was unavailable on the existing record because the association's objects included inseverable non-charitable purposes, so charitable relief could not be granted without further factual scrutiny. The assessment was therefore sustained, with remand only for fuller inquiry into the exemption claim.

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Issues: (i) Whether a trade-union registered association is liable to be assessed as an "individual" under section 3 of the Wealth-tax Act, 1957. (ii) Whether the assessee was entitled to exemption under section 5(1)(i) of the Wealth-tax Act, 1957, or the matter required further factual inquiry and setting aside of the assessment.

Issue (i): Whether a trade-union registered association is liable to be assessed as an "individual" under section 3 of the Wealth-tax Act, 1957.

Analysis: Section 3 is the charging provision and applies to every individual, Hindu undivided family and company. The assessee was a juristic person registered under the Trade Unions Act, 1926, and not a company or Hindu undivided family. The word "individual" has been judicially construed in a broad sense to include a juristic person or a group forming a unit, and the constitutional understanding of the expression supported such construction. A registered association of this character was therefore distinguishable from a mere members' club and fell within the charging provision.

Conclusion: The assessee was rightly held assessable as an "individual" under section 3 of the Wealth-tax Act, 1957.

Issue (ii): Whether the assessee was entitled to exemption under section 5(1)(i) of the Wealth-tax Act, 1957, or the matter required further factual inquiry and setting aside of the assessment.

Analysis: Exemption under section 5(1)(i) is available only where property is held under trust or other legal obligation for a public purpose of a charitable or religious nature. The objects of the association included non-charitable purposes, and where charitable and non-charitable objects are inseverable, exemption is unavailable. The Tribunal's view that the factual material was insufficient to determine the exact application of funds and the dominant objects of the association justified remand for further inquiry.

Conclusion: The assessee was not entitled to exemption on the existing record, and the direction for further investigation and fresh assessment was justified.

Final Conclusion: Both reference questions were answered against the assessee, and the assessment was sustained with remand only for fuller examination of the exemption claim.

Ratio Decidendi: A juristic association may be treated as an "individual" for wealth-tax purposes where the charging provision admits a broad construction, and exemption for charitable purposes is unavailable where the institution's objects include inseverable non-charitable purposes.

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