Personal liability for co-operative society tax arrears cannot be imposed without a statutory basis or individual undertaking.

Agricultural income-tax assessed on a co-operative society is a liability of the society as a separate legal person, not of its members or former office-bearers. In the absence of a specific statutory provision creating personal liability, or any undertaking by the individual concerned, arrears due from the society cannot be recovered from a member or president through revenue recovery proceedings merely because of association with the society. Section 26 of the Co-operative Societies Act did not impose such personal liability. The recovery proceedings against the individual were therefore incompetent and quashed.

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Issues: Whether a member or former president of a co-operative society can be fastened with personal liability for agricultural income-tax arrears assessed in the name of the society and recovered from him under revenue recovery proceedings.

Analysis: The levy under the Agricultural Income-tax Act was on the society as the person owning and deriving agricultural income. A co-operative society registered under the Co-operative Societies Act is a body corporate with a distinct legal personality and its liability is its own. In the absence of any statutory provision creating personal liability, or any undertaking by the individual concerned, the dues of the society cannot be recovered from a member or office-bearer merely because of his association with the society. Section 26 of the Co-operative Societies Act did not cast such personal liability.

Conclusion: The petitioner was not personally liable for the tax arrears of the society, and the recovery proceedings against him were incompetent and quashed.

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