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TMI Blog1964 (9) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ies under five distinct settlement deeds, as having formed an association of individuals within the meaning of section 2(c) read with the charging section 3 of the Madras Agricultural Income-tax Act. The Assistant Commissioner of Agricultural Income-tax on appeal confirmed the order of the assessing officer, and on further appeal to the Agricultural Income-tax Appellate Tribunal, the Tribunal held that there was no association of individuals, in the circumstances of the case and set aside the assessment orders on the basis of that finding. The State has filed these revision cases against the orders of the Tribunal. The facts of the case are briefly the following. One Pattammal who appears to have been a lady owning extensive properties, e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total 30-08 5. 17-3-1955 'Gift in favour of her brother's son, Sri N. T. Ramanujam Iyengar (seventh respondent here) Lands in Ammangudi village ... 2-35 Lands in Subbayyansethi village ... 22-50 Total 24-85 -------------------------------------------------------------------------------------------------------------------------------------------------- When the matter came up before the Assistant Commissioner of Income-tax, he noticed that even after the settlement under the gifts referred to, all the lands continued to be managed and cultivated as usual with the same agents by Pattammal, some lands under pannai cultivation and some on waram. The waram was received in common from all the lands ; and the income was pooled toget ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants (respondents here) had produced the account books showing their paddy and expenses separately debited for the account years 1954-55 to 1961-62 for R. Kanaka, R. Hemalatha and R. Indira. They had produced the account books showing the receipt of paddy and expenses separately for the account years 1955-56 to 1960-61 for Padma and N. T. Ramanujam. They had also filed statements showing the receipts of each beneficiary and the appropriation of expenses. In the view of the Tribunal, all those could not be ignored, for they furnished evidence about the documents having been acted upon. The Tribunal also observed that there could not be any inference about an association of individuals through the mere fact of common management. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the above two agents in the village. When the paddy was sold, an account was opened in the Kumbakonam Co-operative Urban Bank in the joint names of Pattammal and her son-in-law and the amounts were immediately deposited there. But the amounts so deposited were duly remitted to the different beneficiaries at the earliest opportunity. Thus the amount due to Ramanujam, one of the settlees, who is the brother's son of Pattammal and brother of Raghunathachari, was sent by bank draft to his address.The amounts due to the minor grand-daughters of Pattammal represented by their father and mother as trustees were remitted to a separate account opened in the joint names of Pattammal's daughter and her son-in-law in the Indian Bank. The affidavit p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from their lands. There is no scope for construing such owners as having formed an association solely by reason of their having engaged one and the same lessee or manager or agent for the purpose of cultivation. The fact that, in the present case, the different owners of the land formed members of one family or acquired their properties by settlement or partition from one person could not by itself lead to any alteration to this principle. Even in such a case it is necessary to prove the essential requirement, viz., that as between themselves they had associated together and decided upon the common exploitation of their lands for common benefit and that it was only in pursuance of that agreement a single person was selected to carry out t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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