1993 (11) TMI 5

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... under section 54(1) of the Tamil Nadu Agricultural Income-tax Act, 1955 (hereinafter referred to as "the Act"), against the order dated September 27, 1988, passed by the Tamil Nadu Agricultural Income-tax Tribunal in A.T.A. Nos. 48 to 50 of 1986. The Tribunal has held that the respondent cannot be considered to be an association of individuals and it can only be considered as tenants-in-common; t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rmining the true meaning of the expression "association of persons" were laid down by the Supreme Court in G. Murugesan and Bros. v. CIT [1973] 88 ITR 432 after taking note of a number of earlier judgments. According to the apex court, an 'association of persons' is one in which two or more persons join in a common purpose or common action, and as the words occur in a section which imposes a tax o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of individuals'. These tests stand amply satisfied in the instant case from the material on the record, particularly the statement of Mohamed Iqbal." As the son and grandsons of the testator succeeded to certain shares under the will, they cannot be considered to have formed an association for the purpose of managing an estate, in which they have acquired certain shares by reason of the will l....