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1 - 10 of 11 (0.24 seconds)Section 31 in The Income Tax Act, 1961 [Entire Act]
Section 23 in The Income Tax Act, 1961 [Entire Act]
Section 30 in The Income Tax Act, 1961 [Entire Act]
Section 33 in The Income Tax Act, 1961 [Entire Act]
Commissioner Of Income-Tax, Andhra ... vs Raja Reddy Mallaram. on 20 November, 1963
a surplusage. This argument is also contrary to the express
provisions of s. 3, which mark out the members of the
association individually as a separate entity from the
association of persons. Income of every person whether he
is a member of an association or not is liable to the charge
under the head "'every individual". Section 14(2) (b) only
says that if such an individual happens to be a member of an
association of persons which has already been assessed, the
tax would not be payable in
respect of the share of his income again. That under the
Act an assessment can be made on an association of persons
as a unit or, alternatively, on the individual members
thereof in respect of their respective shares of the income
was assumed by this Court in Commissioner of Income-tax v.
Raja Reddy Mallaram(1). We, therefore, hold that s. 3
impliedly gives an option to an appropriate authority to
assess the total income of either the association of persons
or the members of such association individually.
The next question is whether the said option is given only
to the Income-tax Officer and is denied to the Appellate
Assistant Commissioner and the Appellate Tribunal. Under
the Act the Income-tax Officer, after following the proce-
dure prescribed, makes the assessment under s. 23 of the
Act. Doubtless in making the assessment at the first
instance he has to exercise the option whether he should
assess the association of persons or the members thereof
(1) [1964]51 I.T.R. 285 (S.C.)
91
individually. It is not because that any section of the Act
confers an exclusive power on him to do so, but because it
is part of the process of assessment; that is to say, he has
to ascertain who is the person liable to be assessed for the
tax. If he seeks to assess an association of persons as an
assessable entity, the said -entity can object to the
assessment, inter alia, on the ground that in the
circumstances of the case the assessment should be made on
the members of the association individually.