The main legal point established in the judgment is that tenants-in-common are entitled to the benefit of compounding as persons under section 13 (1) of the Kerala Agrl. IT Act, 1991.

OM PRAKASH, C.J.

These four sets of tax reference cases raise a very important and interesting question for consideration whether the benefit of compounding under section 13 (1) of the Kerala Agrl. IT Act, 1991 (briefly, "the Act"), can be availed of by tenants-in-common.

Sub-section (9B) of section 13 of the Act, which was inserted by Act 19 of 1994 w.e.f. 1st April, 1994, is as under :

"(9B) Notwithstanding anything contained in sub-section (9), any person holding landed property as tenants-in-common may opt to pay tax in accordance with the provisions of this section if, -

(i) all the other tenants opt to pay tax under this section, and

(ii) the share of each tenant in the common tenancy together with his individual property does not exceed the limit specified under sub-section (1)."

2. After insertion of sub-section (9B), tenants-in-common, undoubtedly, can avail of the benefit of compounding under section 13 (1). But, we are concerned in the instant Tax reference cases with the consecutive asst. yrs. 1991-92 to 1993-94, which preceded 1st April, 1994, when the amending Act 19 of 1994 came into force. The stand taken by the assessing authority in all these cases is that the benefit of sub-section (9B) will not enure to the tenants-in-common for the assessment years in question, inasmuch as sub-section (9B) came to the inserted after expiry of the relevant assessment years.

3. It is the case of the revision-petitioners that sub-section (9B) is merely explanatory and that tenants-in-common were entitled to the benefit of compounding under section 13(1) even before the insertion of sub-section (9B) in the Act.

To support the order of the AO, who denied the benefit of compounding to the tenants-in-common, the Government Pleader submits that the tenants-in-common are not "persons" within the meaning of section 13 (1) and, therefore, they are not eligible for the benefit of compounding thereunder. The question, therefore, is whether tenants-in-common are assessable as persons and, if so, whether they are eligible for the benefit of compounding under section 13 (1) of the Act.

4. Sec. 13 (1) of the Act is a charging section, which is extracted below :

"3. Charge of agricultural income-tax. - (1) Tax at the rate or rates specified in the Schedule of this Act shall be charged for each assessment year in accordance with and subject to the provisions of this Act, on the total agricultural income of the previous year of every person."

Sub-section (2) of section 3 reads as under :

"Subject to the provisions of this Act in the case of persons holding property as tenants-in-common and deriving agricultural income, the tax shall be assessed at the rate applicable to the agricultural income of each tenant-in-common."

Sec. 2 (20) defines the word "person" as meaning any individual or association of individuals owning, possessing or holding property for himself or for any other, or partly for his own benefit and partly for another either as owner, possessor, trustee receiver, common manager, administrator or executor or in any capacity and includes a firm or a company, an association of individuals, whether incorporated or not, any institution capable of holding property.

Sec. 2 (25) defines the term "tenants-in-common" as meaning two or more persons owning or managing property jointly, having therein equal or unequal shares either by the same or different titles or by intestate succession. From the above definition sections, it is amply clear that words "person" does not mean an individual only, but that also means, an association of individuals owning possessing or holding property. Also, a "person" under section 2 (20) may hold property for his own benefit or for the benefit of others or in diverse capacities as owner, trustee, receiver, manager, administrator or executor. Under sub-section (2) of section 3, a person may also hold property as "tenants-in-common". Therefore the term enants-in-common" denotes the capacity in whi