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TMI Blog1985 (5) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... sociation itself having been assessed to tax ? " The facts out of which the question arises are the same in both the cases and can be briefly stated. The assessee was a member of an association of persons consisting of four persons, namely, Madan Lal Lamba, Kailash Lamba, Harish Lamba and Jagdish Lamba. They ran a guest house at 9, Kitchenar Road, New Delhi, during the period November 15, 1961, to April 30, 1962, for the delegates to the World Council of Churches at New Delhi. It is common ground that the four persons formed an association and that they had equal shares in the profit earned by the association in the above activities. The share of profit of each of the two assessees has been determined at Rs. 5,265 and included in his pers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o derives income in respect of which, being a person, he is also chargeable. There is nothing in the present Income-tax Act which precludes the taxation of both the association of persons and the individual, the former in respect of its income and the latter in respect of his share of the income from the association. Of course, the some income is not intended to be subjected to tax twice and this double taxation is avoided by the provision contained in section 86(v). This clause provides that where the assessee is a member of an association of persons, income-tax is not payable by him in respect of any portion of the amount which lie is entitled to receive from the association on which tax has already been paid by the association. So far as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld not be entitled to make a direct assessment also on the association or firm. That was because the old Act authorised the Income-tax Officer to proceed either against one or the other but not both. The absence of such an option in section 4 clearly indicates that there is no obstacle in the way of the Income-tax Officer directly assessing a member of an association or a firm without making an assessment on the association or firm itself. Learned counsel for the assessee also submitted that in this case the association of persons had earned income from November 15, 1961, to April 30, 1962, and that this income should have been assessed, if at all, only in the assessment year 1962-63. It is not, however, open to the assessee to raise this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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