G MURUGESAN Vs. COMMISSIONER OF INCOME TAX MADRAS

JUDGEMENT

(1.) These are connected appeals by certificate. They are directed against the decision of the High Court of Madras in a Reference under Section 66 (1) of the Indian Income Tax Act, 1922 (to be hereinafter referred to as the Act).

(2.) The question of law referred for ascertaining the opinion of the High Court was:

(3.) For deciding the question formulated above, it is necessary to divide the assessment years into two groups. For the assessment years 1957-58 and 1958-59 the assessees themselves submitted their return in the status of 'Association of Persons' but for the later years, they submitted their returns as individuals'. In their returns for the assessment years 1959-60, they stated that they have divided their interest in the shares and therefore, they should be thereafter assessed as 'individuals'. It is necessary to mention one other circumstance before we proceed to set out the relevant facts. The income in which we are concerned in this case arises under two heads. Part of the income arises from house property and the remaining income arises from dividends from shares. So far as the income from house property is concerned, the High Court has answered the question in favour of the assessee; the Revenue has not appealed against that decision. Hence we need not go into that aspect. All that we have to decide in the present case is whether the dividend income which is the subject-matter of these appeals should be assessed in the hands of the appellants as an 'Association of Persons' or as 'individuals'.