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versus
Civil Appeal No. 50 of 1975, decided on 6th April 1977.
(On appeal from the judgment and order of the Lahore High Court, Lahore, dated 16-2-1965 in W. P. No. 1810 of 1964).
-- S. 3-Association, assessment of-Word "individual" in S. 3 Means a natural person and not a legal entity such as co-operative society-Society, accordingly, held, to be assessed as an association of persons and not as an individual.-[Words and phrases].
Punjab Province v. The Federation of Pakistan P L D 1956 F C 72 ref.
Javald Hashmi, Advocate and Ejaz Ahmad Khan, Advocate-on-Record for Appellant.
Sh. Abdul Haq, Senior Advocate for Respondent.
Date of hearing : 6th April 1977.
.-The question raised in this appeal by Jullundur Co-operative Transport Society Ltd., Lyallpur, assesses, is whether it is liable to be assessed to tax for the years 1956-51, 1957-58, 1958-59 and 1959-60 as an individual or an association of persons. The liability to assessment is otherwise not disputed.
If the appellant's status is that of an individual within the purview of section 3 of the Income-tax Act, its members cannot be made personally liable for payment of tax. But in case the appellant is assessed as an association of persons then the liability falls on each and every member of the society. The purpose of this appeal, therefore, is to avoid the liability of the members of the appellant society to pay tax for the assessment years 1956-57, 1957-58 195E-59 and 1959-60.
I1 is pointed out by Sh. Abdul Haq, learned counsel for the respondent that in The Punjab Province v. The Federation of Pakistan PLD19556FC72 this Court has, on good authority and for cogent reasons held that after the amendment of section 3 in 1939 the term 'individual' means a natural person and not a legal entity as is claimed by the appellant before us.
After the citation of the aforementioned case, Mr. Hashmi, learned counsel for the appellant expressed the desire to withdraw the appeal. He is allowed to do so but before dismissing the appeal we would like to observe that we are in complete accord with the view expressed in The Punjab Province v. The Federation of Pakistan that the term 'individual' in section 3 or the Income-tax Act means a natural person and not a legal entity such as co-operative society. The society is, accordingly, to be assessed as an association of persons and not as an individual.
The appeal in dismissed with costs.
S. Q. Appeal dismissed.
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