COIMBATORE CLUB Vs. WEALTH TAX OFFICER

JUDGEMENT

(1.) THESE writ petitions praying for the issue of writs of prohibition at the instance of the Coimbatore Club (hereinafter referred to as "the club") challenge the legality and validity of the notice issued by the WTO. City Circle I(2), Coimbatore, the respondent herein, to the club under s. 16(2) of the W.T. Act, 1957 (hereinafter referred to as "the Act"), for the assessment years 1972-73 to 1976-77. Earlier, notices under s. 17 of the Act, had been issued to the club on the ground that for the assessment years mentioned above, the assessable net wealth of the club had escaped assessment and the club was called upon to deliver returns of its net wealth for the years in question chargeable to tax together with other particulars. The club sent a reply stating that on the abolition of wealth-tax on companies from the assessment year 1960-61 onwards, wealth-tax is chargeable only on individual and HUFs and as the club did not fall within these categories of assessable units or entities, it is not liable to be assessed to included with in the expressions "individual" occurring in s. 3 of the Act has it had been assessed for purposes of income-tax as an association of persons and the property of the club was also not held by a body of individuals. In these proceedings, the club seeks to have the notices quashed on the ground that it is not a taxable unit or entity under s. 3 of the Act and all the notices issued are, therefore, without jurisdiction.

(2.) IN the common counter filed by the respondent, the issue of notices under the Act is sought to be supported on the basis that has club should be regarded as an "individual" for purposes of the Act, as these expression "individual" is not confined only to a human being, but is wide enough to take in group of persons forming a single collective unit or entity and owning property. Alternatively, it was claimed that even on the footing that the club can be treated as an association of persons, such an entity or unit is also comprehended within the expression "individual", notwithstanding that s. 3 of the Act does not specifically mention association of persons as such. As objection was also raised that having regard to the availability to the club of other adequate alternative remedies under the Act the discretionary remedy of writ should not be granted.

(3.) THE word "individual", according to Shorter Oxford English Dictionary, means inter alia, a single object or thing, or a group of things regarded as a unit; a single member of a class, group, or number; numerically one, single; existing as a separate indivisible entity; distinguished from others by attributes of its own. According to Webster's New International Dictionary also, the word "individual" means, inter alia, existing as a separate and distinct entity; single or singular; particular; opposed to general and universal; of the character of an individual; possessing the distinctness and complexity in unity, characteristics of organised things, concepts, organic beings and persons. It is thus evident that the word "individual" has a wider as well as a narrower shade of meaning, depending upon the context. It is, therefore, to be seed whether the word "individual" in s. 3 of the Act is confined in its applicability only to a human being or it is intended to have wider scope and application so as to take in plurality of human beings or even a body of human beings who can be regarded as a distinct unit and entity, but compendiously and conveniently designated as a club. THE word "individual", though used in the singular in. 3 of the Act, would take in not only a human being but a plurality of individuals or human beings as well, banded or tied together by common aim or joint interests and forming a single collective unit. Giving the word "individual" occurring in s. 3 Of the Act the ordinary and wider meaning, there being no indication in that section to limit is meaning in any manner, the expression "individual" appears to comprehend human beings (individuals) who have constituted themselves into a single distinct collective unit or entity known as the club, for pursuing it aims or objects without any motive for profit.