Association of individuals test: post-partition family management and income sharing do not create a taxable common venture without proved common purpose.

After partition by metes and bounds, sharers of family property are not automatically an association of individuals for agricultural income-tax. The test is whether they joined in a common purpose or concerted action to produce income, profits or gains; mere joint cultivation by one member, management by a common manager, or division of net income among sharers is insufficient. On the stated facts, there was no evidence of any prior agreement by all sharers, including the minors, to carry on a joint income-producing venture, and the father's continued management was treated as family convenience and parental obligation. The assessment on the footing of an association of individuals therefore could not be sustained.

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Issues: Whether, after partition by metes and bounds of the family properties, the sharers could be treated as an association of individuals for the purpose of agricultural income-tax.

Analysis: An association of individuals requires persons to join in a common purpose or common action with the object of producing income, profits or gains. Mere joint cultivation by one member or a common manager, or division of net income among the sharers, is not enough. Where the family properties have been divided by metes and bounds and each member has a specific share, the members do not automatically become an association of individuals. On the facts, there was no evidence of a prior agreement or concerted decision by all the sharers, including the minors, to carry on a joint enterprise for common benefit. The continued management by the father was consistent with family convenience and parental obligation, not with a taxable association.

Conclusion: The sharers were not an association of individuals; the assessment could not be sustained on that basis and the assessee succeeded.

Ratio Decidendi: Post-partition management of separately allotted properties by one member and distribution of income among the sharers does not constitute an association of individuals unless there is a proved common purpose or agreement to carry on a joint income-producing venture.

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