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TMI Blog1998 (11) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... n sub-section (9), any person holding landed property as tenants-in-common may opt to pay tax in accordance with the provisions of this section if,--- (i) all the other tenants opt to pay tax under this section, and (ii) the share of each tenant in the common tenancy together with his individual property does not exceed the limit specified under sub-section (1)". After insertion of sub-section (9B), tenants-in-common, undoubtedly, can avail of the benefit of compounding under section 13(1). But, we are concerned in the instant TRCs with the consecutive assessment years 1991-92 to 1993-94, which preceded April 1, 1994, when the amending Act 19 of 1994 came into force. The stand taken by the assessing authority in all these cases is tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessed at the rate applicable to the agricultural income of each tenant-in-common". (underlining by, court) Section 2(20) defines the word "person" as meaning any individual or association of individuals owning, possessing or holding property for himself or for any other, or partly for his own benefit and partly for another either as owner, possessor, trustee receiver, common manager, administrator or executor or in any capacity and includes a firm or a company, an association of individuals, whether incorporated or not, and any institution capable of holding property. Section 2(25) defines the term "tenants-in-common" as meaning two or more persons owning or managing property jointly, having therein equal or unequal shares either by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operty changes. Therefore, the submission of the learned Government Pleader that a tenant-in-common is not "person" within the meaning of section 13(1), does not hold good and has to be rejected. Charging section 3(1) is attracted to "person" only. Agricultural income in the hands of tenants-in-common was assessable to tax even prior to the amending Act 19 of 1994. It is, therefore, clear that tenants-in-common were assessed to tax only as persons and not as tenants-in-common, as that is not an assessable entity under the Act. Section 13(1) reads as under : "13. Composition of agricultural income-tax.---(1) Notwithstanding anything contained in this Act, any person who holds landed property within the State extending to not more than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perative society. The term "tenants-in-common" does not appear under sub-section (9). It means that sub-section (9) does not exclude tenants in-common, who are persons within the meaning of the charging section 3(1) as well as under section 13(1). If the legislative intention were to exclude the tenants-in-common from the benefit of compounding, then sub-section (9) of section 13 should have explicitly excluded tenants-in-common like members of any association of persons, a company or co-operative society. Tenants-in-common not being explicitly excluded under sub-section (9) of section 13 and they being persons by virtue of section 2(25) and other sections under the Act, are entitled to the benefit of compounding under section 13(1) like ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. It is true that the Legislature never undertakes a redundant exercise. We do not dispute the legal proposition that if a legislation is already in existence, then the same will not be repeated. But it is not uncommon that clarificatory legislation is introduced if there is any ambiguity or confusion in regard to the existing legislation. This is what exactly happened while administering section 13(1). The authorities harboured the belief bona fide but erroneously that benefit of compounding under section 13(1) cannot be availed of by tenants-in-common. What was implicit earlier has been made explicit by sub-section (9B) that the tenants-in-common will be entitled to the benefit of compounding under section 13(1). Lastly, the learned Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tenant-in-common. It is clear from the above provisions that a tenant-in-common is an individual; and he has to be assessed in that capacity in respect of his share of the income in the common properties." (emphasis supplied) The question in the above authority was whether joint owners could be assessed in the status of tenants-in-common as held by the Inspecting Assistant Commissioner. As already pointed out, tenants-in-common are not an assessable entity. Under charging section 3(1), the assessable entity is "person". However, the learned judge held that a tenant-in-common is an individual and he has to be assessed in that status, meaning thereby, as person, which is an assessable entity under the Act. Therefore, this authority does no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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