9911796707
TMI Blog1989 (9) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... to refer under section 256(2) of the Income-tax Act, 1961 ("the 1961 Act") is: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in holding that the assessee is not liable to wealth-tax after the introduction of section 21AA in the Wealthtax Act, 1957 ?" The assessment year is 1981-82. The assessee is George Club. Section 21AA of the Wealth-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia for the purposes of this Act ......" The club is registered under the Societies Registration Act, 1860. We shall assume, for the sake of argument, that a club is an association of persons within the meaning of section 21AA(1). The further question, however, is whether it can be said that "the individual shares of the members of the said association in the income or assets or both of the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , but shall be given to some other society. In this view of the matter, it is difficult to say that member of a club has a share either in the income or assets of the club. We may also refer in this behalf to the decision of this court in Deccan Wine and General Stores v. CIT [1977] 106 ITR 111, where this court set out the distinguishing features of an association of persons vis-a-vis body of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y also say that sub-section (4) of section 21AA appears to lend support to our conclusion. It says that, upon discontinuation or dissolution of an association of persons, every person who was a member of such association on such date shall be jointly and severally liable for the amount of tax, penalty, or other sum payable by the association. We do not think that such an action is contemplated in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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