SHANTHI PLANTATIONS Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE Tamil Nadu Agricultural Income-tax Appellate Tribunal, Madras-104, has held that the assessee should be assessed as an association of persons and not as tenants-in-common. THE fact that the property had been purchased as tenants-in-common in equal shares by five brothers and that, that status has been recognised by the Authorised Officer, Land Reforms, was not in dispute. THE Tribunal has taken the view that the tenants-in-common are also to be regarded as association of individuals and assessed as such.

(2.) THOUGH the Act does not define "tenants-in-common", the charging section 3(3) itself requires that the persons holding property as tenants-in-common and deriving agricultural income, be assessed at the rate applicable to the agricultural income of each of the tenants-in-common. Had the Legislature intended that the status of tenants-in-common should be treated in the same manner as that of the association of individuals, section 3(3) would not have been enacted. Section 3(3) is a special provision meant to be applied to tenants-in-common. The assessment of the assessee should therefore have been made in accordance with section 3(3) of the Act.