Pendse, J.:— The controversy in this petition stands concluded by two decisions of this court in the case of Orient Club v. CWT, [1982] 136 ITR 697 and in the case of Willingdon Sports Club v. C.B Patil, 3rd Addl. WTO, [1982] 137 ITR 83. The two Division Benches of this court have taken the view that an association of persons is not an individual and hence it is not an entity for the purpose of the Wealth-tax Act and is not chargeable to wealth-tax under the Act.
2. Petitioner, No. 1 is an association of shipowners formed for the purpose of protecting and promoting the interests of Indian shipping.
3. The respondent No. 1 issued a notice in the month of April, 1980, to petitioner No. 1 under section 17 of the Wealth-tax Act, inter alia, reciting that petitioner No. 1 association has net wealth chargeable to tax for the assessment year 1976-77 and the same had escaped assessment. Notices were also issued in respect of the assessment years 1977-78 and 1978-79. The validity of these notices is challenged in this petition filed under article 226 of the Constitution of India.
4. In view of the dictum laid down by the two Division Benches of this court, the petitioners are entitled to succeed and the action of the respondents in issuing show-cause notices to petitioner No. 1 under section 17 of the Wealth-tax Act is clearly unsustainable.
5. Accordingly, the petition succeeds and the rule is made absolute in terms of prayer (a). In the circumstances of the case, there will be no order as to costs.