1972 (9) TMI 27

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.... now in dispute, the firm did not apply for registration. But the partnership was continued. On April 1, 1963, the partnership was dissolved. For the assessment year 1962-63, the four partners submitted four separte applications for composition of agricultural income-tax. Since the partnership was in existence during the assessment year, they were asked to submit a single composition application for all the lands. The assessee-firm replied on May 4, 1962, stating that the partners were not making their applications in their capacity as partners of a firm but they were submitting as 'Individual members. But the Agricultural Income-tax Officer refused to permit the composition by individual members, as the partnership continued and was in exi....

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.... were divided brothers owning definite portions of lands.The partnership was entered into for joint management of the entire lands with a view to ensure efficiency, economy and convenience and with a view to expand and improve agricultural production and carry on and continue the agricultural business in partnership among themselves on the terms and conditions set out in the deed. Under clause 1, the parties shall manage the business pertaining to the agricultural lands held by them jointly and individually under the name and style of " A, Graham and Brothers ". The capital of the partnership shall be a sum of Rs. 20,000 and to be contributed equally by the four partners. Under clauses 4 and 5, the profits and losses of the agricultural bus....

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....on. The term of "person" is defined in section 2(q) as follows : " 'Person' means any individual or association of individuals, owning or holding property for himself or for any other, or partly for his own benefit and partly for another, either as owner, trustee, receiver, common manager, administrator or executor or in any capacity recognised by law, and includes an undivided Hindu Mitakshara family, an Aliyasantana family or branch, a Marumakkathayam tarwad or a tavazhi possessing separate properties, or a Nambudri or other family to which the rule of impartibility applies, a firm or a Company an association of individuals, whether incorporated or not, and any institution capable of holding property." It would be seen from this definit....

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....ying on the agricultural business during the accounting period and derived agricultural income. Clearly, therefore, the firm is liable to be assessed to agricultural income-tax in respect of the agricultural income derived by it. The learned counsel then contended that in any case the relationship between the parties or partners are in the nature of tenants-in-common and that, therefore, they are liable to be assessed only under section 3(3) of the Act. This contention may be considered with reference to the decided cases on the meaning of the words "tenants-in-common". In State of Madras v. Subramania lyer the facts were these : One Subramania Iyer was the assessee. He, his son and son's son were divided in status and the properties also ....