| Case ID |
67d8074f-4fee-4408-bee7-2534d7fa7e53 |
| Body |
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| Case Number |
IT REFERENCE NOS. 97 AND 106 OF 1977 |
| Decision Date |
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| Hearing Date |
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| Decision |
The court upheld the Tribunal's decision to directly assess the share income of the member from the association of persons (AOP) without requiring the AOP itself to be assessed. It clarified that the income earned by an AOP is taxable and that each member is also liable for tax on their share of income. The court emphasized that the absence of direct assessment on the AOP does not prevent individual members from being assessed on their respective shares. The ruling reinforces the interpretation of sections 4 and 2(31) of the Income-tax Act, 1961, clarifying the tax obligations of AOPs and their members. |
| Summary |
This case revolves around the assessment of income from an association of persons (AOP) under the Income-tax Act, 1961. The case involved Kailash Lamba, a member of an AOP that operated a guest house. The primary issue was whether the share income of a member could be taxed without the AOP itself being assessed. The Delhi High Court ruled that individual members of an AOP could be directly assessed on their share of income, affirming that the income of an AOP is subject to tax and is also considered the income of its members. This decision is significant as it clarifies the tax responsibilities of AOPs and their members, ensuring that individual tax assessments can proceed independently of the association's tax status. The case cites previous judgments to differentiate its findings and solidify its legal stance. |
| Court |
Delhi High Court
|
| Entities Involved |
Not available
|
| Judges |
D.K. Kapur,
S. Ranganathan
|
| Lawyers |
Anoop Sharma,
R.K. Raghavan,
K.K. Wadhera,
R.C. Pandey
|
| Petitioners |
Kailash Lamba
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1986 SLD 1277 = (1986) 157 ITR 266
|
| Other Citations |
CIT v. Kanpur Coal Syndicate [1964] 53 ITR 225 (SC),
CIT v. Murlidhar Jhawar & Purna Ginning & Pressing Factory [1966] 60 ITR 95 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
4,
2(31),
86(v)
|