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1 - 10 of 19 (0.31 seconds)Section 3 in The Income Tax Act, 1961 [Entire Act]
Section 185 in The Income Tax Act, 1961 [Entire Act]
Section 3 in Income Tax Rules, 1962 [Entire Act]
Commissioner Of Income-Tax, U.P vs Kanpur Coal Syndicate on 30 April, 1964
Dealing with the question the Supreme Court following its earlier decision in Commissioner of Income Tax v. Kanpur Coal Syndicate (1964) 53 Itr 225, wherein it was observed that section 3 of Indian Income Tax Act, 1922, expressly treats "an association of persons and the individual members of an association" as two distinct and different assessable entities and that on the terms of the section "the tax can be levied on either of the said two entities according to the provisions of the Act" held that "the same principle would apply to the case of assessment of partners individually of an unregistered firm". It was accordingly held that "the partners may be assessed individually or they may be assessed collectively in the status of an unregistered firm: the Income-tax Officer cannot, however, seek to assess the one income twice-once in the hands of the partners and again in the hands of the unregistered firm". The above observations were made on the footing that apart from an asssciation of individuals or a firm, the 1922 Act did not recognise a collection of individuals as an entity capable of being assessed to tax. Since the three parties in that case were not a registered firm, it was held that they could be assessed to tax collectively as an association of individuals or as an unregistered firm if the relation between then. was of partners. It was accordingly held that since the income-tax Officer had assessed the three parties separately he unquestionably exercised an option knowing that they had entered into a trading transaction in which they were jointly interested.