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CA Intermediate · Corporate and Other Laws · The General Clauses Act, 1897

A statute imposes a penalty on any 'person' who fails to file a return. Meridian Traders LLP, a limited liability partnership, did not file the return. It argues that only natural persons are covered. The statute contains no definition of 'person' and nothing in the context requires a narrower meaning. Which position is correct under the General Clauses Act, 1897?

The LLP is covered by the penalty. The General Clauses Act, 1897 defines 'person' to include any company, association or body of individuals, whether incorporated or not, so it is not limited to natural persons unless the context requires otherwise.

  1. AThe LLP is outside the provision because it is not a natural person
  2. BThe LLP is covered, as 'person' includes any company, association or body of individuals, whether incorporated or notCorrect
  3. COnly registered companies are covered, not an LLP
  4. DThe LLP is covered only if the statute is a Central Act amending the LLP Act

Explanation

The General Clauses Act defines 'person' to include any company or association or body of individuals, whether incorporated or not, unless the context requires otherwise. An LLP is a body corporate and is therefore covered, and nothing in the facts narrows the meaning. Option 3 wrongly restricts the definition to companies.

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