BARWOOD ESTATE Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessee is the petitioner herein. M/s Barwood Estate Plantations Pvt. Ltd. is one of the constituents of Barwood Estate which carries on the business of plantation with a common management with regard to the lands belonging to (1) Hariprasad, Coonoor, (2) M/s Gudalur Industrial & Agricultural Enterprises, Gudalur, and (3) M/s Barwood Plantations Pvt. Ltd., Gudalur. THE Agrl. ITO has computed the total income of the Barwood Estate and allocated them in the ratio of the shares in the Barwood Estate. THE shares allocated to Barwood Plantations Pvt. Ltd. has been assessed by the Agrl. ITO at the appropriate rate of 65 per cent. It is the contention of the assessee in Barwood Estate that the status of association of individuals is wrong and status of tenants-in-common only should apply. When co-owners of land run the estate with a common unit of management and derive income, it becomes an assessable entity since there is volition among the parties to join together and derive income by common enterprises. THErefore, the Agrl. ITO came to the conclusion that the assessee should be assessed as association of individuals. On appeal, the AAC confirmed the order passed by the Agrl. ITO in determining the status of the assessee as association of individuals. On further appeal, the Tribunal confirmed the order passed by the AAC in the matter of confirming the status of the assessee as that of association of individuals.

(2.) BEFORE us, learned counsel for the assessee submitted that the assessee should be assessed as co-owners by treating them as tenants-in-common.