2014 (1) TMI 1873 - HC - Income Tax

Accrual of income to the AOP - HELD THAT - No income accrued to the assessee - AOP (Association of Persons) before the Tribunal. The Tribunal has relied upon its earlier orders and to the effect that when no income accrues to the AOP but to the respective constituents of the AOP, who were to do specified portion of a contract at their own risks and in their individual capacities, then the AOP is not liable to be taxed. This view is consistent with the materials placed on record. Since it is in the peculiar facts of the case before the Tribunal and the Commissioner of Income Tax (Appeals), we do not feet that any substantial question of law arises for determination and consideration in these appeals.

Summary

The Bombay High Court dismissed the appeals as no income accrued to the assessee AOP before the Tribunal, and the AOP is not liable to be taxed when income accrues to its constituents individually. The Tribunal's decision was consistent with the case facts, and no substantial question of law arose for consideration.