HON’BLE SUPREME COURT · SOURCE-REVIEWED NOTE
G. Murugesan and Brothers v. Commissioner of Income-tax, Madras
Civil Appeal Nos. 685-690 of 1970
[1973] 3 SCR 515 ·
Indian Income-tax Act, 1922: sections 3 and 66(1)
Sources & disclosures includedDownload original judgment / order
3-judge bench; unanimous judgment delivered by K. S. Hegde, J. · K. S. Hegde, J. · P. Jaganmohan Reddy, J. · H. R. Khanna, J.
Assessment years: 1957-58 to 1962-63
01 · Facts of the case
Four brothers jointly held company shares, received dividends in a common account and divided them equally. They filed AOP returns for the first two years but later said their interests had been divided and returned the income individually (SCR pp.516-518; PDF pp.2-4).
Source: Primary judgment: facts
02 · Discussion by the Hon’ble Court
An AOP requires voluntary combination for a common income-producing purpose. Joint title and receipt alone are insufficient. The unwithdrawn early AOP returns were admissions; for later years, the express assertion of individual receipt was unrebutted and needed no prescribed withdrawal form (SCR pp.518-520; PDF pp.4-6).
Source: Primary judgment: discussion
03 · Judicial decision
Appeals for the first two years were dismissed without costs; appeals for the later four years were allowed with costs and the reference answered for the assessees (SCR p.521; PDF p.7).
Source: Primary judgment: decision
04 · Outcome / in whose favour
Mixed result: AOP status for the first two years, individual treatment for the later four (SCR pp.519-521; PDF pp.5-7).
Source: Primary judgment: outcome
05 · AKHB REVIEW POINT
AKHB analysis: joint ownership and mechanical allocation of passive income do not prove an AOP. Document voluntary common purpose and joint management; prior returns remain strong admissions (based on SCR pp.518-521; PDF pp.4-7).
Source: Primary judgment: review point
Source & verification
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Statutory scope
The ruling construes the repealed 1922 Act and does not provide current entity-status clearance.
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