Members of a Co-operative Society, including office-bearers, are not personally liable for the society's tax dues unless there is a specific provision or undertaking creating such liability.

Petitioner is a doctor by profession. He is now faced with proceedings under the Revenue Recovery Act (R.R. Act for brevity) for realisation of certain amounts due by way of tax under the Agricultural Income Tax Act, 1950 (ait Act in brief ) 'from the third respondent which is a Co-operative Society registered under the Kerala Co-operative Societies Act, 1969 to which 1 shall hereinafter refer as the society. The tax is due for the assessment years 1979-80 to 1982-83 corresponding to the accounting years 1978- 79 to 1981-82. Petitioner was the President of the society for a term of three years, 1979- 80 to 1981-82. The tax is sought to be recovered from him because of this connection.

2. The society was assessed to tax under the ait Act for the assessment years 1979-80 to 1982-83 by the proceedings Ext. P5 dated March 12,1985. The amount of tax demanded pursuant thereto was not paid. Though the assessment was made in the name of the society, copy of the order of assessment was served on the petitioner personally, on June 19, 1985, though he had ceased to be its President as early as in 1982. Petitioner objected, and informed the first respondent assessing authority accordingly, pointing out that he had no personal liability for the amount of tax assessed and that it has to be recovered from the society. He was however, pursued with proceedings for recovery and the notice Ext. P6 issued under the R.R.Act,

where he was mentioned as the defaulter or the society (whatever it means). Petitioner filed this writ petition challenging the proceedings so initiated against him for recovery of the tax due from the society.

3. There is no dispute that it was the society that owned the agricultural land and that it was the society that derived and enjoyed the income therefrom, which was brought to assessment in its name under the order of assessment Ext. P3. Only the proceedings for recovery are pursued against the petitioner, who was the President of the managing committee of the society during three out of the four years concerned. Does a member of the society, whether an office-bearer or otherwise, have any personal liability for the amount of agricultural income tax due from the society?, that is the question,

4. The levy under the Act is on the total agricultural income of the "previous year" of a person. "Person" is defined in S.2(m) of the Act thus:

"Person" means any individual or association of individuals owning, possessing or holding properly for himself or for any other, or...."

The status of the third respondent is shown in the order of assessment as "co-operative society". A Co-operative Society registered under the Co-operative Societies Act, 1969, is under S.9 thereof, a body corporate, with perpetual succession, and a common seal, with power to hold property, enter into contracts, institute and defend suits, and other legal proceedings, and to do all things necessary for the purpose for which it was constituted. The third respondent society was one registered with limited liability (vide Ext. P1) that is, the liability of the members is limited to the extent of their share, which, so far as the petitioner is concerned, is fully paid up. The question is whether the petitioner could be made liable for payment of the dues of a corporate body like this society, merely because of his having been its President for some time. I do not find any ground, in law or in fact, to make the petitioner liable for payment of the dues of the society under Ext. P3. It was held by this court in Punalur Paper Mills Ltd. v. District Collector, Quilon (1985 KLT 758) that-the director of a company was not liable personally for the arrears of sales tax due from the company. This is for the reason that a company has a legal personality of its own, distinct from its members, and therefore, in the absence of a contract, or a statutory provision, making the director personally liable for the dues of the company, he cannot be proceeded against for