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TMI Blog1998 (4) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... elf and his wife as the trustees. Returns were filed for the assessment year 1976-77, claiming that the income should be computed in the hands of the trust and assessed in the hands of the beneficiaries. But the Income-tax Officer was of the opinion that the creation of the trust shows that the karta and his two minor sons were carrying on the business as an association of persons and he assessed the entire income in that status. The Appellate Assistant Commissioner cancelled the status of an association of persons adopted by the Income-tax Officer as against the status of "trustees" declared by the assessee. He relied upon the decision of the Tribunal, Madras Bench "A", Madras, in the assessee's own case for the assessment year 1976-77 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sociation of persons only and not in the status of individual. The said Division Bench of this court while doing so, it is said, followed the decision of the Supreme Court in the case of Meera and Co. v. CIT [1997] 224 ITR 635. In that case, an individual who was carrying on business under the name and style of M and Co., died intestate on August 25, 1962, and was survived by his mother, widow and three minor children. The mother of the deceased relinquished her interest in the assets of the deceased against a lump sum payment. The business, M and Co., was continued as a single unit in the same name by the widow on her behalf and on behalf of three minor children. For the assessment years 1963-64 to 1967-68, the widow claimed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jointly carried on to produce income. It was a clear case of a joint business venture of a few individuals. The income of this business had been rightly assessed in the status of a "body of individuals", (ii) that section 161 is an enabling provision. The charge that is imposed by section 4 of the Act may be computed and recovered in the manner laid down in the Act including sections 160, 161 and 166 of the Act. When the minors along with their mother formed a body to generate income, the levy of tax under section 4 was on that body. The mother could not insist that the income of the joint venture must be assessed separately on the minors and on her, even when a joint business was carried on. For the reasons as above, it goes without say ..... X X X X Extracts X X X X X X X X Extracts X X X X
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