COMMISSIONER OF WEALTH TAX Vs. MULAM CLUB

JUDGEMENT

(1.) Common question arises in these references at the instance of the revenue. The question is:

(2.) Respondent is a members' club by name Sri Mulam Club, Thiruvananthapuram. The Wealth tax Officer treated the club as an individual and subjected it to wealth tax for the assessment years 1970-71 to 1978-79. On appeal, the Appellate Assistant Commissioner cancelled the assessment. On further appeal, the Income tax Appellate Tribunal upheld the order of the Appellate Assistant Commissioner holding that the members' club being an association of persons is not an individual and hence is not an assessable entity for the purpose of wealth tax. It is thereafter at the instance of revenue the question aforesaid was referred to this Court for decision.

(3.) It is urged by learned counsel for the revenue that the expression "individual" in S.3 of the Wealth Tax Act is wide enough to include an association of persons and respondent club being an association can be subjected to payment of wealth tax On the other hand, it is contended by learned counsel for respondent that an association of persons is not an assessable entity and the word "individual" cannot be construed so as to include a body of individuals. In order to appreciate the rival contentions, it is appropriate to refer to S.3 of the Wealth tax Act (for short the Act). The section reads: