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TMI Blog1943 (5) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... nt for the year 1937-38. The material facts as found by the learned Commissioner are that the assessees are co-heirs of the late M. Karim Bakhsh from whom they inherited under Mohammadan Law specific Share of the property left by him. The income of this property is derived from rent deeds which stand in their joint names. A munshi has been employed to manage the property and collect the rent. After the deduction of the cost of collection and other expenses the net income is distributed in accordance with their respective Shres. From 1920-21 to 1934-35 the assessees were jointly assessed as an association of individuals or unregistered firm. In 1935-36, however, they were assessed on their individual shares. Subsequently, when for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pitale and Another, In re, was a reference relating to Hindu assessees, and the learned Chief Justice pointed out that the assessees in the first instance did not constitute an association of individuals. But he held that as soon as they elected to retain the property and manage it as a joint venture producing income they became an association of individuals within the meaning of Section 9 of the Income Tax Act. It is doubtful whether this authority can have any application to the facts of the present case where we are dealing with co-heirs under Mohammadan Law, and when there is no evidence of a joint venture. The Rangoon Full Bench decision. Commissioner of Income Tax, Burma v. M. A. Baporia and Others, is more closely allied to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was no joint venture such as was found in the Bombay and Rangoon cases., the mere fact that the assessees after inheriting their shares of Carom Bakshis property, did not choose to partition does not indicate, in my view, that the co-heirs have formed any such combination for the promotion of a joint enterprise or for mutual profit such as is implied in the expression association of individuals as used in Section 3 of the Income Tax Act as it stood at the material time. It is pointed out by the learned Chief Justice in commissioner of Income Tax, Burma v. M. A. Baporia and Others That the expression association of individuals as used in that Section must be construed persons mentioned there in, namely Hindu undivided family, company and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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