TaxTMI 
TaxTMI 
2009 (10) TMI 52
X X X X Extracts X X X X
X X X X Extracts X X X X
....the facts and in the circumstances of the case, the learned Income Tax Appellate Tribunal was justified in holding that the assessment was not justified simply because the warrant of search was not in the single name of the assessee but included the name of her husband also. II.Whether the learned Income Tax Appellate Tribunal was justified in law in holding that the assessment could have been made in both the names, as the warrant of search contained both the names, is contrary to the provisions of the I.T.Act, 1961 which does not provide for assessment in joint names." 6. The Undisputed facts are that a warrant of authorization under Section 132(1)(C) of the Act, 1961 was issued duly signed by the competent authority in the joint name of Mr. Mudit Verma and Mrs. Vandana Verma to enter and search the residence at Bijwa House, 28, Park Road, Lucknow on 17.10.2001. Separate warrants of authorization under Section 132(1)(C) of the Act were also issued in the name of different persons covering different premises such as Sri Avdhesh Kumar, Jaiswal Complex, 6-B, Park Road, Lucknow; M/s Mansarovar Sahkari Avas Samiti Ltd.,D-Block, Indira Nagar, Lucknow; Mansarovar Urban Co-operative Ba....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ue's appeal on merit and accordingly, dismissed the appeal of revenue by the common order dated 30.9.2008. 8. Hence this appeal has been filed for adjudication of the substantial question, referred to above. 9. In order to answer the question raised in the instant appeal, it would be appropriate to deal with the provisions of Section 132 (1) (c) and other connected provisions. The relevant provisions of 132 (1) (c) are reproduced as under : "Section 132 (1) Where the [Director General or Director] or the [Chief Commissioner or Commissioner] [or any such [Joint Director] or [Joint Commissioner] as may be empowered in this behalf by the Board], in consequence of information in his possession, has reason to believe that (a) ............................................ (b)............................................ (c)any person is in possession of any money, bullion, jewellery or other valuable article or thing and such money, bullion, jewellery or other valuable article or thing represents either wholly or partly income or property [which has not been or would not be, disclosed] for the purposes of the Indian Income-tax Act, 1922 (11 of 1922), or this Act (hereinafter in this ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e (a) or clause (b) or clause (c), then,notwithstanding anything contained in section 120, it shall be competent for him to exercise the powers under this sub-section in all cases where he has reason to believe that any delay in getting the authorisation from the Chief Commissioner or Commissioner having jurisdiction over such person may be prejudicial to the interests of the revenue: Provided further that where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorised officer may serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it, except with the previous permission of such authorised officer and such action of the authorised officer shall be deemed to be seizure of such valuable article or thing under clause(iii). " 10. On perusal of the provisions of Section 132 (1) (c), it reflects that the officer empowered by the Board has reason to believe that "any person" who is in possession of any money....
X X X X Extracts X X X X
X X X X Extracts X X X X
....esolve the controversy as to who will be "any person", it will be necessary to comprehend the meaning of "any person". 14. It is pertinent to mention here that the definition of word "any" has not been defined under the Income-tax Act, 1922 but the meaning of word "person" has been defined under Section 2(31) of the Income-tax Act. 15. For the purpose of resolving the controversy, it is necessary to have meaning of word "any" though as mentioned above, there is no meaning of word "any" under the Income-tax Act. The word "any" has a diversity of meanings and may be employed to indicate "all" or "every" as well as "some or "one" and its meaning in a given statute depends upon the context and the subject matter of the statute. It is often synonymous with "either", "every" or "all". Its generality may be restricted by the context. 16. Now, let us consider a few particular cases when the General Clauses Act would assist in the interpretation of the Income-tax Act 1961. The word "Person" as defined under section 2(31) of the Income-tax Act, 1961 "person" includes - "(i) an individual, (ii) a Hindu undivided family (iii) a company, (iv) a firm, (v) an association of persons or a b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....5 (Ori.). 21. It is now well-settled that the word ''individual' does not necessarily and invariably always refer to a single natural person. A group of individuals may as well come in for treatment as an individual under the tax laws if the context so requires - CIT v. Shri Krishna Bandar Trust [1993] 201 ITR 989 (Cal.). 22. ''Family' connotes a group of people related by blood or marriage. According to Shorter Oxford English Dictionary, 3rd edition, the word ''family' means the group consisting of parents and their children, whether living together or not; in a wider sense, all those who are nearly connected by blood or affinity; a person's children regarded collectively; those descended or claiming descent from a common ancestor; a house, kindred, lineage; a race; a people or group of peoples. According to Aristotle's Politics I, it is the characteristic of man that he alone has any sense of good and evil, or just and unjust, and the association of living beings who have this sense make a family and a State. 23. The word ''family' always signifies a group. Plurality of persons is an essential attribute of a family. A single person, male or female, does not constitute a family....
X X X X Extracts X X X X
X X X X Extracts X X X X
....v. CIT [1973] 88 ITR 432 (SC). 28. To ''Associate' is to join in a common purpose or action. ''Association' does necessitate the exercise of volition of those who form the association. The exercise of that volition can be by or on behalf of those who form the association - Estate of Khan Sahib Mohd. Oomer Sahib v. CIT [1958] 33 ITR 767 (Mad.). 29. An association of persons does not mean any and every combination of persons. It is only when they associate themselves in an income-producing activity that they become an association of persons. They must combine to engage in such an activity; the engagement must be pursuant to the combined will of the persons constituting the association; there must be a meeting of the minds, so to speak. In a nutshell, there must be a common design to produce income. If there is no common design, there is no association. This interpretation of the expression ''association of persons' flows from the meaning of the word ''association' - Deccan Wine & General Stores v. CIT [1977] 106 ITR 111 (AP). 30. Joining together by the members of the association for the purpose of producing income is a prerequisite for formation of an association of persons. Such....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bit of particular category of persons redundant. The expression ''BOI' must be given a definite meaning of its own. ''AOP' and ''BOI' convey two different combinations of persons and it will not be proper to try to apply the principle of ejusdem generis to give the same restricted meaning to the newly introduced expression ''BOI' as had been given by the Supreme Court to AOP on interpretation of the word ''association'. The fact is that the expression ''BOI' must receive a wider interpretation than ''AOP' - CIT v. Modu Timblo [1994] 206 ITR 647 (Bom.). 34. The absence of a common design is what principally distinguishes a body of individuals from an association of persons. Another distinguishing feature is that the one refers to persons and the other to individuals - Deccan Wine & General Stores v. CIT [1977] 106 ITR 111 (AP). 35. It is possible to attribute any one of the following three meanings to the expression ''body of individuals' occurring in the Income-tax Act, 1961 : (1) on the same basis as an ''association of persons', that is, the members of the body must have joined together for the purpose of producing income; (2) a conglomeration of individuals who h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rization. In the instant case, undisputedly, warrant of authorization under Section 132 of the Income-tax Act was issued in the joint name of Mudit Verma and Vandana Verma and as such, the authority who signed the warrant had information in his possession and had reason to believe that Mudit Verma and Vandana Verma are in possession of undisclosed assets such as money, bullion etc. and have also undisclosed income jointly as word "and" means jointly. Accordingly, he has signed the warrant as aforesaid in the joint name of 'Mudit Verma and Vandana Verma'. In case, authorizing authority had information in his possession in consequence of which he had reason to believe that Mudit Verma and Vandana Verma though living in single premises as husband and wife, possessed undisclosed assets including income separately, then, he might have issued warrant of search individually for conducting the search as both Mudit Verma and Vandana Verma are assessed to income tax in their individual capacity, which reflects from the orders passed by the assessing authority as well as First Appellate Authority. Moreover, as the warrant of authorization has been issued in the joint name of Mudit Verma and V....