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TMI Blog1956 (4) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... 922, and was liable to be assessed to income-tax and excess profits tax in that status ? (ii)Whether each member of the Group should have been assessed on the income derived by him as a member of the Group? (iii)If the answer to the first question is in the affirmative, whether the various groups did not constitute independent 'association of persons' liable to be assessed separately? (iv)Whether the notice under section 22(2) of the Act served on Haji Ahmed Haji Ali was a valid notice to the assessee ? (v)Whether the assessment proceedings were in accordance with law?" 3. Facts relevant for purposes of this case are as follows. The Income-tax Officer, Khamgaon, issued a notice under sub-section (2) of section 22 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce ₹ 34,091 Allowing ₹ 4,000 for earned income relief, he made the assessment. 4. This assessment was made under sub-section (4) of section 23 of Act. 5. Similarly, another notice under sub-section (2) of section 22 of the Act was served on the assessee through Haji Ahmad Haji Ali on 16th August, 1947. This time also no return was filed. A notice under sub-section (4) of section 22 was, therefore, issued ; account-books were filed and the Income-tax Officer determined the total income for that year under sub-section (4) of section 23 of the Act to the best of his judgment at ₹ 98,345. It is an admitted position that there were changes in the membership of the group during the year. Only Haji Ahmad Haji Ali was a commo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to "association of persons" to make it more comprehensive. Nothing turns on the meaning of the word "individual" or "person" in the instant case. We are only concerned with ascertaining the exact import of the word "association." 9. According to the English Oxford Dictionary, "associate" means: "to join in common purpose, action or condition ; to link together, unite, combine, ally, confederate." In our opinion, this connotes that when two or more persons unite together of their own free volition in some common purpose or action they can be deemed to have associated together and formed an association. 10. The expression "association of individuals" was considered by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he meaning of both section 3 and section 55 of the Indian Income-tax Act, 1922." 11. The views taken in decisions reported in Mohammad Aslam v. Commissioner of Income-tax, United Provinces [1936] 4 ITR 412, In the matter of Keshardeo Chamrid [1937] 5 ITR 246 and Mohamad Abdul Kareem and Co. v. Commissioner of Income-tax, Madras [1948] 16 ITR 41, have gone still further and held that the expression "association of persons" should be read ejusdem generis with the word 'firm' immediately preceding it; and before there can be an association of individuals within the meaning of the Act it must be shown that the association has at least some of the attributes of a firm or partnership, though not in the strictly legal sense ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed to import cloth in the Buldana district from the mills in India. This recommendation was accepted by the Provincial Government. The Deputy Commissioner, therefore, issued an order, the relevant part whereof reads as follows: "In accordance with the instructions of the Provincial Government, I hereby direct that the distribution of cloth from the Bombay and Ahmedabad mills and of local mills shall be carried on through the agency of the persons named below : Group of Importers 1.M/s Haji Ahmad Haji Ali and Company, Khamgaon, 2.M/s Bhanji Kuwarji, Chikhli, 3.M/s Trimbaklal Tribhuwandas, Khamgaon, 4.M/s Deolal Rangulal, Khamgaon. Even though these persons were appointed by the Deputy Commissioner as a group of importers all of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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