Ajit K.Sengupta, J. - (1.) This reference under Section 27(1) of the Wealth-tax Act, 1957, relating to the assessment years 1968-09, 197071 and 1971-72 involves the question of status of the assessee and its entitlement to exemption under Section 5(1)(i) of the Act. The assessee is a body registered under the Trade Unions Act, 1926. The objects of the association are enumerated in Rule 3 of Chapter I of the Rules and Regulations of the Association. The Wealth-tax Officer initiated the wealth-tax proceeding by issue of notices under Section 17 of the Act in respect of the assessment years under reference. In response to the said notice, the assessed filed nil returns contending that it being an association of persons was not a taxable entity in terms of Section 3 of the Act. It further contended that it could not be brought to tax in view of Section 5(1)(i).
(2.) The Assessing Officer negatived both the contentions of the assesses and observed that the word "individual" in Section 3 includes a group of persons who form a unit or association of persons relying on the decisions of the Supreme Court in CIT v. Sodra Devi (1957) 32 ITR 615 and Banarsi Dass v. WTO [1965] 56 ITR 224.
(3.) Aggrieved by the assessment order, the assessee preferred appeals before the Appellate Assistant Commissioner who confirmed the Assessing Officer's orders by his consolidated order dated December 5, 1981.;