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TMI Blog1970 (1) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... d by him from the agricultural property standing in his name. Separate proceedings were taken against his wife, Rani Hazars Begum but, as her income was found to be below the taxable minimum, no assessment was framed against her. It appears that afterwards some information came into the possession of the agricultural income-tax department on the basis of which it formed the opinion that the Raja and the Rani constituted an association of individuals within the meaning of section 2(11) of the Act. Accordingly, for the years 1361 to 1363 F. the income of the Raja and the Rani was clubbed together and they were assessed to tax as an association of individuals under section 15(3) read with section 25 of the Act. In respect of the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arose out of the order of the Board. In compliance with this order, the Board has now submitted this consolidated reference for, the opinion of this court on the following two questions of law : " 1. Whether the assessee and his wife could be said to be an association of individuals within the meaning of section 2(11) of the Agricultural Income-tax Act on the grounds that they live together, that the lands standing recorded in their names are cultivated and managed jointly, that in Suit No. 135, decided on September 3, 1961, an area of 120.19 acres was held to be in the sole possession of the assessee and to have been fictitiously recorded in the name of his wife and that in another suit an exchange of lands recorded in the names of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Raja and the Rani formed an association of individuals and their income was liable to be assessed together. Under section 3 of the Act which is the charging section, tax is to be paid for each year on the total agricultural income of the previous year of every person. The term "person" is defined in section 2(11) of the Act, which reads as under: " 2. (11) 'person' means an individual or association of individuals, owning or holding property for himself or for any other, or partly for his own benefit and partly for that of another, either as owner, trustee, receiver, manager, administrator or executor or in any capacity recognized by law, and includes an undivided Hindu family, firm or company but does not include a local authority. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he mere co-ownership of property, where the shares of the co-owners are defined, shall not convert the co-owners into an association of individuals. One of such co-owners must hold the property for the benefit of all the co-owners in one of the capacities mentioned in section 2(11), namely, in the capacity of a trustee, receiver, manager, administrator or executor or in any capacity recognised by law under which one person is entitled to hold and manage the property on behalf of others. The mere common management of the property by the co-owners for the sake of convenience shall not bring about an association of individuals. In the instant case, neither the Raja nor the Rani owned or held any property in any of the capacities mentioned abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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