COMMISSIONER OF INCOME TAX BOMBAY NORTH KUTCH AND SAURASHTRA AHMEDABAD Vs. INDIRA BALKRISHNA

JUDGEMENT

(1.) THE Judgment of the court was delivered by :

(2.) THESE two appeals with special leave have been heard together. They arise out of similar facts and the question of law arising therefrom is the same.

(3.) WE now come to the main question in this appeal. What constitutes an ' association of persons ' within the meaning of the Income-tax Act ? It has been repeatedly pointed out that the Act does notdefine what constitutes an association of persons, which under s. 3 of the Act is an entity or unit of assessment. Previous to the year 1924, the words of s. 3 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. By the Income-tax Amendment Act of 1939 (Act VII of 1939) the section was again amended and it then said: ' Where any Act of the central Legislature enacts that income-tax shall be charged for any year at any rate or rates, 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 the total income of the previous year of every individual, Hindu undivided family, company and local authority, and of every firm and other association of persons or the partners of the firm or members of the association individually.'