9911796707
TMI Blog1984 (2) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... The WTO held that the assessee is a society registered under the Mysore Societies Registration Act, 1960. Under section 23 of that Act, upon dissolution of the society, any property remaining after the satisfaction of all its debts and liabilities shall not be paid to or distributed amongst the members of the society but shall be given to some other society. The managing committee holds the property under trust. The membership of the society cannot be transferred. He held that the society is not an ordinary AOP but a trust. In the case of Trustees of Gordhandas Govindram Family Charity Trust v. CIT [1973] 88 ITR 47 the Supreme Court has held that the trusts are assessable to wealth-tax. Accordingly, he rejected the contention of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n running a club for the benefit of its members. It is an AOP. In fact, the WTO, in the wealth-tax assessment orders, has stated in the status column as an ' AOP '. Under section 3 only individual and HUF family are assessable entities. An AOP is not an assessable entity under the Act. 6. In Orient Club's case the Gujarat High Court held that an AOP is not an entity assessable as individual under the Act nor is there any other provision in the Act which makes an AOP an assessable entity. It was observed as under : " . . . It is, therefore, clear that under rule 2(1) of the Wealth-tax Rules, 1957, read with section 4(1)(b), the Legislature has given clear indication that an association of persons is not an assessable entity covered by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany and it is not applicable in the case of assessee which is an association of persons." Thereafter, he proceeded on the footing that it can be treated as a trust. In our view, the assessee cannot be treated as a trust as no trust is created by any settlement and no trustees are constituted under any deed. Thus, the assessee which is a mutual association cannot be treated as a trust. Thus, the ratio laid down by the Supreme Court in Trustees of Gordhandas Govindram Family Charity Trust's case has no application to the instant case. This decision has, in fact, been referred to by the Gujarat High Court in Orient Club's case. 9. The only decision dealing with a club is that of the Gujarat High Court in Orient Club's case which is dire ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
