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TMI Blog1972 (9) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... nership firm. The partners of the firm were one A. Greha Durai and his three brothers, who were the sons of one P. Iya Nadar. The partnership was evidenced by a partnership deed dated March 21, 1960. For the assessment years 1960-61 and 1961-62, the partnership firm applied for registration under the Agricultural Income-tax Act, 1955, and the same was granted. But, for the assessment year 1962-63, which is the year now in dispute, the firm did not apply for registration. But the partnership was continued. On April 1, 1963, the partnership was dissolved. For the assessment year 1962-63, the four partners submitted four separte applications for composition of agricultural income-tax. Since the partnership was in existence during the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e partnership deed dated March 21, 1960, and the order of the Tribunal that the four brothers entered into a partnership called "A. Graham and Brothers " for cultivating their agricultural lands as a partnership firm and during the accounting period in question the partnership was unregistered under the Agricultural Income-tax Act but cultivated the lands and derived the income. Prior to the partnership the partners were divided brothers owning definite portions of lands.The partnership was entered into for joint management of the entire lands with a view to ensure efficiency, economy and convenience and with a view to expand and improve agricultural production and carry on and continue the agricultural business in partnership among themsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not hold any property anid unless a firm holds property it cannot be treated as a "person" within the meaning of section 2(q). We are unable to agree with this contention of the learned counsel. Under section 3(1), agricultural income-tax at the rate or rates specified in Part I of the Schedule to the Act shall be charged for each financial year on the total agricultural income of the previous year of every person. The term of "person" is defined in section 2(q) as follows : " 'Person' means any individual or association of individuals, owning or holding property for himself or for any other, or partly for his own benefit and partly for another, either as owner, trustee, receiver, common manager, administrator or executor or in any c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ship Act defines that. " 'Partnership' is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Persons who have enteed into partnership with one another are called individually 'partners' and collectively 'a firm...'. " Owning of property by the partnership was not a condition precedent for the existence of the firm. The partnership was carrying on the agricultural business during the accounting period and derived agricultural income. Clearly, therefore, the firm is liable to be assessed to agricultural income-tax in respect of the agricultural income derived by it. The learned counsel then contended that in any case the relationship between the parties or p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contrary will enure to the benefit of all ; such possession by itself will not amount to adverse possession against the other co-sharers unless there is clear proof of ouster. In the present case, from the proved fact that Subramania Iyer's daughter's sons on the first part, Subramania lyer's son and son's son on the second part and Subramania Iyer on the third part held definite and localisable items in the properties, there is no unity of possession and, therefore, no question of a tenancy-in-common arises in this case." The facts of the present case are very similar to the facts of the case cited above. In this case also the four brothers are divided in status and they have also partitioned their lands by metes and bounds. They have en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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