Law:

Section:

-Sections 2(q), 3 (3) and 10 (2)(c) - Madras Agricultural Income-tax Act, 1955. CASES REFERRED TO Kamalamma v. Pichamma AIR 1949 Mad. 503. State of Madras v. Subramania Iyer [1966] 61 ITR 613 (Mad.) JUDGMENT Ramaswami, J.-The petitioner was a partnership firm. The partners of the firm were one A. Greha Durai and his three brothers, who were the sons of one P. Iya Nadar. The partnership was evidenced by a partnership deed dated March 21, 1960. For the assessment years 1960-61 and 1961-62, the partnership firm applied for registration under the Agricultural Income-tax Act, 1955, and the same was granted. But, for the assessment year 1962-63, which is the year now in dispute, the firm did not apply for registration. But the partnership was continued. On April 1, 1963, the partnership was dissolved. For the assessment year 1962-63, the four partners submitted four separate applications for composition of agricultural income-tax. Since the partnership was in existence during the assessment year, they were asked to submit a single composition application for all the lands. The assessee-firm replied on May 4, 1962, stating that the partners were not making their applications in their capacity as partners of a firm but they were submitting as individual members. But the Agricultural Income-tax Officer refused to permit the composition by individual members, as the partnership continued and was in existence throughout the assessment year. The Agricultural Income-tax Officer, therefore, directed them to submit their return of income for the assessment year 1962-63. The assessee then submitted a return of the income but claimed the status of the individuals as "tenants-in-common" and required to be assessed under section 3(3) of the Agricultural Income-tax Act. The Agricultural Income-tax Officer held that since the partnership was entered into for the specific purpose of earning agricultural income and the firm was dissolved only as and from April 1, 1963, subsequent to the assessment year, the assessee was liable to be assessed as an unregistered firm and assessed it accordingly. The Assistant Commissioner of Agricultural Income-tax and the Tribunal confirmed the order.…

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