TaxTMI 
TaxTMI 
1935 (3) TMI 27
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....09. On that the aforesaid individuals were charged to tax as follows : Income Tax - Rs. 8,881-6; Surcharge on income tax Rs. 2,220 6-0; Super Tax - Rs. 2,360-1-0; surcharge on super tax - Rs. 590 in all Rs. 14,051-13-0. It is said by the assessees that this assessment is wrong, because it assesses them as an "association of individuals" and thus exposes them to a higher rate, and a higher amount of both income tax and super tax. The history of the ownership of this property, as far as it is relevant in this case, is as follows. By a deed of conveyance, dated the 9th January, 1920, this property was purchased by Ranchael Bekhor, Captain E. V Sassoon A. J. Raymond and B. N. Elias, and their respective shares in the property purchased were one third, one-sixth, one sixth, and one third. In the deed of purchase those four individuals were described as the purchasers. The deed says "the purchasers, which expression shall, unless excluded by or repugnant to the context include them and each of them and their and each of their heirs, executors, administrators, representatives and assigns of the third part." The deed also recites that the purchasers were to have and to hold the said pre....
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.... such person to let into possession thereof and to set fines for new leases and to accept surrender of leases and for that purpose for us and in our name and for and in the name of any of us to make, seal, deliver and execute any lease or grant or other lawful deed and instrument whatsoever which shall be necessary or proper in that behalf and also in our name or in the name of any of us to sign and give lawful notice to quit to any tenant of the said premises. 5. For us and in our name and for our benefit or for and in the name of and for the benefit of us to enter into sign, execute, seal and deliver such agreement or agreements with any firm or individual as may be necessary for the sale, exchange or letting on lease of any of our immovable properties and also to sign, execute, seal and deliver all conveyances, deeds, supplicates receipts and other documents required to be signed or executed and to carry such agreement or agreements into effect and to appear before such Collector, Special Collector and other authorities and to give all such consents and do all such acts in the premises as to the Attorney may appear to be necessary or desirable. 6. For us and in....
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....ection 3 of the Income Tax Act. Section 3 reads as follows : "Where any Act of the Indian Legislature enacts that income tax shall be charged for any year at any rate or rates applicable to the total income of any assessee, tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions of, this Act, in respect of all income, profits and gains of the previous year of every individual, Hindu undivided family, company firm and other association of individuals." Previous to the year 1924, the words of the section in question were "individual, company, firm and Hindu undivided family". By the Indian Income Tax Amendment Act of 1924 (Act XI of 1924) the words "individual, Hindu undivided family, company, firm, and other association of individuals" were substituted for the former words. Those words "association of individuals" have to be construed in their plain, ordinary meaning. There is no difficulty about the word "individuals". "Associate" means, according to the Oxford Dictionary, "to join in common purpose, or to join in an action". Did these individuals join in a common purpose, or common action, thereby becoming an association ....
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....ing of Section 3 of the Indian Income Tax Act ? In my view the answer to that question must be "Yes". (2) Assuming that they constituted such an association of individuals whether in the circumstances of this case the said association can be said to be the owner of the property within the meaning of Section 9 of the Indian Income Tax Act ? It was admitted by Mr. Banerji for the assessee that he could not contend to the contrary. The answer to the question 2, in my opinion, must be "Yes". (3) If such an association of individuals cannot be treated as owners of the property, whether the said association can assessed under Section 12 of the Income Tax Act in respect of the income derived from the property in question ? In my view, having regard to the answers that I consider should be given to questions 1 and 2, question 3 does not fall to be answered. The Commissioner of Income Tax will get the costs of this hearing 7 gold mohurs; for the Vakil and the two Advocates costs will be such fees as have already been paid to them. COSTELLO, J. - The question which the assessee originally desired to have put before this Court was formulated by the as....