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TMI Blog2015 (8) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... ejudicial to the interest of the Revenue? - Held that:- Under Section 86 of the Act it is provided that when the Assessee is a member of the AOP, income tax shall not be payable by the Assessee in respect of his share in the income of the AOP computable in the manner provided in Section 67 (A). Clause (b) of the first proviso to the above Section states that unless the AOP is chargeable to tax on its total income at the maximum marginal rate, the share of member computed in terms of Section 67 (A) shall form part of its total income. However, there is no corresponding provision for setting off of a member’s share of the losses of the AOP against his personal income. In the instant case the CIT (A) was right in reversing the decision of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of the joint venture at ₹ 11,53,886 after making certain adjustments and disallowing certain expenses, and, fixed the Assessee s share of the loss at ₹ 5,76,943 which was allowed as business loss. The CIT (Appeals) [ CIT (A) ] by an order dated 25th March 1992 reversed the setting off of the above loss of the joint venture against the profit of the Assessee as a business loss by the AO on the ground that the AO could have computed the loss of the AOP only after the AOP filed its own return. The AO s action was held to be without jurisdiction and prejudicial to the interest of the Revenue. The ITAT by its order dated 31st October 1996 reversed the order of the CIT (A) and held in favour of the Assessee. Thereafter, the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 Provisions of new section 67A.- The new section 67A, which has sub-sections (1) to (3) and an Explanation, provides for the method of computing a member s share in the income of an association of persons or body of individuals wherein the shares of the members are determinate, in the same manner as provided for in section 67 for computing a partner s share in the income of the firm. However, the provisions of sub-section (4) of section 67, which deals with set off or carry forward of share of loss of a partner in a registered firm do not find place in section 67A, because there are no provisions in the Income-tax Act for the set off or carry forward of the share of loss of a member in an association or body in his own assessment. 6. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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