Whether the transactions entered into by two or more persons is a joint venture will depend upon the facts of each case to be interpreted in the light of the decisions of the Supreme Court referred to above - Income Tax - 884/CBDT

INSTRUCTION NO. 884/CBDT Dated : September 25, 1975 Section(s) Referred: 182 ,183 Statute: Income - Tax Act, 1961 Attention is invited to the two Circulars C.B.R. No. 30 of 1941 dated 25-5-1941 and No. 31(2)II/44, dated 30-6-1944 on the above subject. 2. These two Circulars have been reviewed in the light of the decisions of the Supreme Court in the case of (i) CIT Vs. Indira Balakrishna (39 ITR 546) and (ii) Mohd. Nurulla vs. CIT (42 ITR 115) and it has been decided to withdraw them with immediate effect. 3. Whether the transactions entered into by two or more persons is a joint venture will depend upon the facts of each case to be interpreted in the light of the decisions of the Supreme Court referred to above. Once it is established that the persons concerned had combined in a joint enterprise to produce income, the combination has to be taken as A joint venture which does not satisfy the requirements of a firm will be assessed as a firm under A joint venture which is a firm will be assessed as a firm under section 182 or U.R.F. under S. 183 according to the facts of each case. These instructions may please be brought to the notice of assessing Income-tax Officers.