CIT KERALA Vs. ESTATE OF LATE C. CHERUTTY

JUDGEMENT

(1.) This is a reference by the Income Tax Appellate Tribunal, Madras Bench, under S.66(1) of the Indian Income Tax Act, 1922. The question referred is:

(2.) An association of persons is a unit of assessment under the Indian Income Tax Act, 1922. As stated by Beaumont C.J. in Commissioner of Income Tax v. Laxmidas Devidas -- 1937 ITR 584, the only limit to be imposed on the words "is such as naturally follows from the fact that the words appear in an Act imposing a tax on income, profits and gains, so that the association must be one which produces income, profits or gains".

(3.) Counsel for the Department submits that the fact that the heirs of Cherutty constitute an association of persons will be evident from a power of attorney produced before the Appellate Tribunal. That document, however, has not been made part of the Statement of the Case.