CIT KERALA Vs. ESTATE OF LATE C. CHERUTTY
LAWS(KER)-1964-8-41
HIGH COURT OF KERALA
Decided on August 12,1964

CIT KERALA Appellant
VERSUS
Estate Of Late C. Cherutty Respondents

JUDGEMENT

- (1.) This is a reference by the Income Tax Appellate Tribunal, Madras Bench, under S.66(1) of the Indian Income Tax Act, 1922. The question referred is: "Whether the assessees did constitute an Association of Persons carrying on business for gain -; and it is common ground that the only controversy in this case is as to whether the sale of the trees concerned was by an association of persons consisting of the widow, the four sons and the three daughters of the deceased Cherutty.
(2.) An association of persons is a unit of assessment under the Indian Income Tax Act, 1922. As stated by Beaumont C.J. in Commissioner of Income Tax v. Laxmidas Devidas -- 1937 ITR 584, the only limit to be imposed on the words "is such as naturally follows from the fact that the words appear in an Act imposing a tax on income, profits and gains, so that the association must be one which produces income, profits or gains".
(3.) Counsel for the Department submits that the fact that the heirs of Cherutty constitute an association of persons will be evident from a power of attorney produced before the Appellate Tribunal. That document, however, has not been made part of the Statement of the Case.;


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