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Income Tax Officer vs Ch. Atchaiah on 11 December, 1995

8.3.7 In our view, even if for any reason the Revenue failed to make any assessment in the hands of the syndicates, then also the income, which is otherwise chargeable to tax in a different tax entity i.e. the syndicate, cannot be added to the income of the assessee. We find that unlike under section 3 of the Income-Tax Act, 1922, in the present Income Tax Act, 1961 there is no such discretion or option available to an assessing officer as regard to taxing of any income earned by an AOP either in the hands of AOP or its members. Now, the assessing officer, subject to the provisions contained in ss. 67A, 86 and 167B is statutorily bound to make the assessment only in the hands of AOP and no addition, on the Signature Not Verified Signed by: BIJU BABY Signing time: 10/21/2024 5:37:05 PM NEUTRAL CITATION NO. 2024:MPHC-JBP:52328 18 ITA-272-2022 count of share of profit of a member in the AOP, can be made in the hands of such member. For such proposition, we rely on the decision of the Hon'ble Apex Court in the case of ITO vs. Ch. Atchaiah - (1996) 218 ITR 0239 (SC) in which their Lordships were pleased to hold that under the present Act there is no discretion available to an AO either to assess the income in the hands of AOP or its members, but the same has to be assessed only in the hands of the AOP. The Apex Court further held that right income must be assessed in the hands of the right person.
Supreme Court of India Cites 28 - Cited by 199 - B P Reddy - Full Document

Mcdowell And Company Limited vs Commercial Tax Officer, Nacharam ... on 14 March, 1996

2. Whether, such syndicate did not have any PAN and that they were not filing statutory tax returns, fully establishing mens rea on the part of the assessee and taxing share of profits of such colourable devices (syndicates) in the hands of the assessee in all practicality is in the spirit of the 'Doctrine of lifting of corporate veil' in larger public interest also not appreciating the judgment of the Hon'ble Supreme Court in the case of Mcdowell & Co. Ltd. Vs Commercial Tax Officer 154 ITR 148 wherein the Hon'ble Apex Court held that colourable devices cannot be used for tax evasion in the garb of tax planning?
Andhra HC (Pre-Telangana) Cites 1 - Cited by 161 - Full Document
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