Judgment

HEGDE, J.:- These are connected appeals by certificate. They are directed against the decision of the High Court of Madras in a Reference under Section 66 (1) of the Indian Income-tax Act, 1922 (to be hereinafter referred to as the Act).

2. The question of law referred for ascertaining the opinion of the High Court was:

"Whether on the facts and in the circumstances of the case, the Department was justified in assessing the assessee in the status of an Association of Persons?"

In this case we are concerned with the assessment of the assessees for the assessment years 1957-1958 to 1962-63. In all these years the assessees were assessed as an Association of the persons . The contention of the assessees is that in the years, in question, they should have been assessed as individuals and not as an Association of Persons . Therefore, the only question that calls for decision is as to the status of the assessee during the relevant assessment years.

3. For deciding the question formulated above, it is necessary to divide the assessment years into two groups. For the assessment years 1957-58 and 1958-59 the assessees themselves submitted their return in the status of Association o