Law: Income Tax Act, 1922

Section: 44,46(5A)

[Income Tax Act, 1922 (Xl of 1922)]......Sections 44, 46 (5A)---Recovery of Tax--Co-operative Society-Association of persons Co-operative society registered under the Sind Co-operative Societies Act, 1925 -Whether a separate juristic legal entity altogether distinct from its members-Held yes-Whether can be treated as Association of persons-Held no-Whether provisions of section 44 can be invoked in the case of such a society which already stands wound up-Held no-Recovery of income-tax due from the society-Whether can be made under section 46(5A) from any of its members-Held no. The question before us is whether the aforesaid society could be treated as an "association of persons". The expression "person" is defined in section 2(9) of the Income Tax Act to include an individual, a Hindus undivided family, a firm, an association of persons or a body of" individuals, whether incorporated or not. a company, Government of a Province, a local authority and every other artificial juridical person. The expression "association of persons" itself has not been defined. But obviously, as "association of persons" is a combination of two or more persons and a single person cannot be treated as an association of persons. The question is whether the aforesaid Society, upon its registration with the Registrar of Co-operative Society, because a single legal person. To this question the answer lies in section 23 of the Sind Cooperative Societies Act, 1925, which says that the registration of a Society shall render it a body corporate by the name under which it is registered, with perpetual succession and a common seal. and with power to hold property, to enter into contracts, to institute and defend suits and other legal proceedings and to do all things necessary for the purposes of its constitution, Thus, as in the case of a Company incorporated under the Companies Act, 1913, a Co-operative Society registered with the Registrar of Co-operative Societies under the Sind Co-operative Societies Act, 1925, becomes a juristic person likewise a co-operative society, if so registered, is one and single person. As it is not possible to treat a limited company as an association of persons…

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