AIR 1968 SUPREME COURT 317 ::67 ITR 106 ::1967 2 ITJ 885 ::1968 (1) SCR 65 ::1968 (1) SCJ 106

Supreme Court Of India

(From: Madras (1) ILR (l962) Mad 175 (2) AIR 1965 Mad 68)

Hon'ble Judge(s): J. C. Shah, S. M. Sikri, V. Ramaswami , JJJ

(A) Income-Tax Act (11 of 1922) , S.3— Constitutionality - Option to assess either association or its members - Not unguided - Does not contravene Art. 14 of Constitution. Constitution of India , Art.14— It cannot be said that there is, by investing authority in the Income-tax Officer to select the association of persons or individual members thereof for the purpose of assessing to tax the income of the association, denial of equality before the law between persons similarly situate within the meaning of Art. 14 of the Constitution so as to render S. 3, in so far as it confers power upon the Income-tax Officer to select either the association of persons or the members @page-SC318 thereof for assessment to tax in respect of the income of the association void.(Para 19) Section 3 does not, it is true, expressly lay down any policy for the guidance of the Income-tax Officer in selecting the association or the members individually as entities in bringing to tax the income earned by the association. Guidance may still be gathered from the other provisions of the Act, its scheme, policy and purpose, and the surrounding circumstances which necessitated the legislation. In considering whether the policy or principles are disclosed, regard must be had to the scheme of the Act. Under the Act of....