Association of Persons test for agricultural income fails where land, cultivation, and income remain individually held and managed.

Agricultural income-tax assessment as an association of persons was rejected because the lands stood in the individual names of the parties, cultivation and enjoyment were separate, and separate accounts and inputs were maintained. A joint borrowing did not by itself establish joint ownership, joint management, or a common venture for earning agricultural income. On the statutory definition of "person", an association of persons required income accruing to an association owning or holding property, which was not shown on the facts found. The Commissioner's revisional order under section 35 was therefore unsustainable, and the original assessments were restored.

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Issues: Whether the petitioners' agricultural lands and income could be assessed in the status of an association of persons, and whether the Commissioner's revisional order under section 35 was sustainable.

Analysis: The properties stood in the individual names of the parties, cultivation and enjoyment were separate, and separate accounts and inputs were maintained in their individual names. A joint borrowing by itself did not establish joint ownership, joint management, or a common venture for earning agricultural income. The facts relied on by the Commissioner did not displace the consistent indicia of individual ownership and individual realisation of income. On the statutory definition of "person", assessment as an association of persons required income accruing to an association owning or holding property, which was not shown on the facts found.

Conclusion: The assessment of the petitioners as an association of persons was not justified, and the revisional order was unsustainable.

Final Conclusion: The Commissioner's order was set aside and the original assessments were restored.

Ratio Decidendi: For agricultural income-tax purposes, an association of persons cannot be inferred merely from joint borrowings or convenience in financing; there must be a real common venture or holding of property by the group as such, evidenced by joint ownership, joint management, or collective realisation of income.

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