TMI Blog1936 (8) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... e meaning of Section 3 of the Income Tax Act? (2) If the answer to the above question be in the affirmative, whether in view of the fact that Mufti Mohammad Aslam has, subsequently to the issue and service of the notice under Section 2 (12) of the Income Tax Act, 1922, transferred his proprietary interest to his wife, the Income Tax Officer is debarred from treating him as the principal officer of the association within the meaning of the section quoted above? The Khalifa Mandi consists in some shops, houses and a piece of open ground on which a market is held. It originally belonged to one Mufti Karim Quli who died in 1860. It appears that from 1925 onwards twenty-six persons have by right of association or transfer been the owne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hindu undivided family have been transposed to a higher position in the sentence it must be inferred that it was the intention of the Legislature that the expression other association of individuals should be ejusdem generis with the word immediately preceding, i.e., the word firm . Thus, before there can be an association of individuals within the meaning of the section, it must first be shown that the association has at least some of the attributes of a firm or partnership, though not in the strictly legal sense of the term. Learned counsel for the department has referred us to the following cases: Commissioner of Income tax, Madras v. Mohideen Sahib of Bellary; Hotz Trust of Simla v. Commissioner of Income Tax; Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing this property and of using it for the purpose of earning income to the best advantage of them all. We now have to see what are the facts in the present case. The Commissioner of Income tax at one place states that in 1925 the owners as a body employed one Kanhaiya Lal, an accountant and a servant of the former lessees, to collect rents and maintain the account thereof. He then mentions that subsequently a second man was employed and he then goes on to state: The collections were made generally by the staff; but sometimes the co-sharers made them themselves and reported them to the accountant for the purpose of writing up and adjusting the accounts. It thus appears that the rents were sometimes collected by one or o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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