9911796707
TMI Blog1986 (1) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... person who exercises any profession or calling or is engaged in trade or holding any appointment, public or private, or is employed in any manner in the State specified in the second column of the Schedule, at the rates mentioned therein. " Person " is defined under the Act in section 2(h). It reads thus : " 2. (h) 'person' means, any person who is engaged in any profession, trade, calling or employment in the State of Karnataka and includes a Hindu undivided family, firm, company, corporation or other corporate body,, any society, club or association, so engaged but does not include any person who earns wages on a casual basis. " In this case, " firm " is one of the entities falling under the definition of " person " and liable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm as a tax consultant is in his capacity as a partner of the firm. Therefore, since tax is imposed on the firm under the Schedule to the Act, there cannot be a tax on the partner over again. This argument of the learned counsel is opposed to the very concept that the partner of a firm is different from a firm as the firm as such is separate and distinct legal entity for purposes of taxation. In the definition of " person " occurring in the Act, any person who is engaged in any profession, trade or calling, tax is leviable on such profession. The tax is levied not on the person but on the profession, trade or calling. Therefore, a firm which carries on a profession is an entity different and distinct from its partners. The petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1979] 118 ITR 50 SC. In the first decision, the Supreme Court held that under the Income-tax Act, the Income-tax Officer has the option to assess either the association of persons or the members of the association of persons separately. In Ipoh's case, it was further observed that the Income-tax Officer's discretion to assess the association of persons or the shares of the members separately is not final; it is subject to appeal to the Appellate Assistant Commissioner and to the Tribunal. It was further held that if an association of persons is taxed in respect of its income, the same income cannot be charged again in the hands of the members individually and vice versa. The M.P. High Court in Cowasji's case [1984] 147 ITR 744 (MP) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the contention of the appellants, the Supreme Court observed as follows (at page 493): " There is nothing in the language of section 61 or the scheme of the Municipal Act which warrants the construction that persons who are carrying on a trade in association or partnership with each other cannot be individually taxed under clause (b) of section 6 1 (1). On the contrary, definite indication is available in the language and the scheme of this statute that such partners can be taxed as persons in their individual capacity. As noticed already, clause (b) makes it clear in no uncertain terms that this is a tax on 'persons'. Its incidence falls on individuals, who belong to a class practising any profession or art, or carrying on trade or cal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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