1976 (11) TMI 116

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....status as AOP against item No.3 in the assessment order and determined the capital gains at Rs. 95,000 on the sale of a property known as 29, general Muthiah Mudali Street, Madras. The assessee went in appeal to the AAC, contesing both the status as well as the quantum. It was pointed out that the property originally belonged to one Munuswamy Chetty, who died intestate on 16th Jan., 1952, leaving two daughters, Smt. Krishnaveni Ammal and Smt. Champalakshmi Ammal. Shri Munuswamy Chetty's wife also died in 1952. According to the law of succession at that time the two daughters of Munuswamy Chetty had life interest in the properties left by him and after their life time, the four grand-sons, i.e. Shri Pattabhiraman and Shri Jayaraman, sons of ....

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.... the pedi-giri of the family, a copy of the deed of sale and copy of the surrender deed. A copy of the agreement for sale dated 20th Dec., 1967 was also placed before us. According to Mr. Nagarajan the status of both 'association of persons' and 'body of individuals' would apply to only persons who, with a commune of interest by volition jointed together, and since there was no joining together in this case, there was no question of adopting the status as either 'Association of Persons' or as 'Body of Individuals'. According to him the four grand-sons of Munuswamy Chetty are the co-owners, holding the property as tenants in common and each must be assessed as per share of their income, the share and interest of each being determined and spe....

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....on desire, and the other facts that any one or more of the members produced or helped to produce income for the benefit of all was also not present here. Taking us through the agreement of sale as well as the deed of sale, referred to earlier, he pointed out the reason as to why the property had to be sold and in this connection referred to the recitation in the sale deed, where it has been stated that "vendors 1,3 and 4, except Vendor 2, are not residing at Madras and whereas the Vendors have found it inconvenient and difficult to own and enjoy the said property in common and have found it necessary to effect a division of the same and for this purpose the vendors have considered it necessary to sell the said property'. He, therefore, cont....

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.... facts of the case have already been given in para 2 of this order and they are not in dispute. We have considered the rival submissions. In ITA Nos. 562 to 567 of 75-76,in the case of Pabbati Shankaraiah & Two minors vs. ITO, Warangal, the Hyderabad Bench 'A' of the Tribunal (wherein one of us was a party) had to consider the scope of the term "Body of Individuals" in its order dated 18th June, 1976 and in that connection it had considered the decision of the Gujarat High Court in CIT vs. Harivadan Tribhovandas (3). The Gujarat High Court, after an extensive discussion of the subject held that the words 'Body of Individuals' occurring in the IT Act, in definition of the word 'person' in s.2(31) means a conglomeration of individuals who car....