G. MURUGESAN & BROS. vs C.I.T., MADRAS

The Supreme Court held that for an 'Association of Persons' to be constituted under the Income Tax Act, volition among members is essential, as per the principles established in the case. The Court ruled that mere joint ownership of shares and receipt of dividends does not imply functioning as an 'Association of Persons'. The assessment for the years 1959-60 to 1962-63 was determined in favor of the assessees, as they had asserted their individual capacity in realizing dividends, which was not rebutted by the Revenue.