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TMI Blog1937 (3) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... assessees in the year of assessment joined together in purchasing certain immoveable properties in Bombay, contributing the purchase moneys in equal shares, that the properties were managed by or on behalf of such owners, and such management resulted in certain profits or gains. One of the assessees was a minor during the year of assessment, and he contracted through his father and natural guardian. The short question is, whether when two persons associate together for the purpose of buying property and managing it so as to produce income they are an association of individuals within Sec. 3 of the Act. Now, Sec. 3 imposes a tax "in respect of all income, profits and gains of the previous year of every individual, Hindu undivided fami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w of no authority for applying the rule so as to limit the meaning of general words to the last of the particular words preceding. Here, there are three associations of individuals referred to in Sec. 3 of the Act, a Hindu undivided family, a company and a firm, and those three associations of individuals are marked by widely different characteristics. A Hindu undivided family is an association united by ties of birth; members of a company are associated in such manner that they become a legal entity; and a firm is an association depending on contract but is not in itself a legal entity; and I think it would be very difficult, if not impossible, to suggest any other association of individuals which embodies substantially the peculiarities o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;Whether the said association can be said to be the owner of the properties within the meaning of Sec. 9 of the Income-tax Act, and was rightly assessed as such?" That question must again be answered in the affirmative. The third question is: "Whether the assessees were in any event rightly assessed as owners of the said property under Sec. 9(1)?" The answer to that question would seem to follow from the answer to question No. 2 and must also be answered in the affirmative. The assessee should pay the costs on the original side scale, less ₹ 100. BLACKWELL, J.- I am of the same opinion. Sec. 9(1) of the Act provides that: "The tax shall be payable by an assessee under the head 'Property' in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m year to year." In my view, that means the property as a whole, and not divided, separate portions of it. I think it perfectly clear that these two individuals were associated together for the purpose of acquiring the property and deriving profits from it, and that they are assessable as an association of individuals. It has been contended that as one of the assessees at the time when the property was acquired, and during the year under assessment, was a minor, he could not be associated with the major assessee to acquire the property. I do not think we are concerned with what was the legal effect of the contract of purchase entered into. In my opinion, the minor was none the less associated with the major assessee in acquiring the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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