The assessee was a member of syndicates (association of persons ...

No double taxation of already taxed syndicate profits in member's hands.

Case Laws     Income Tax

October 25, 2024

The assessee was a member of syndicates (association of persons or body of individuals) and had received share of profits from them. The tax authorities sought to tax the assessee's share of profits from the syndicates in the assessee's hands, but the ITAT deleted the addition. The High Court upheld the ITAT's decision, holding that when an assessee is a member of an AOP/BOI and the income earned from such AOP/BOI has been offered to tax, then the share received by the assessee from such AOP/BOI after payment of due taxes cannot be taxed again in the assessee's hands, as per Section 86(a) proviso read with Section 67A. The court agreed with the ITAT that the income was rightly assessed in the hands of the syndicates, and a direct assessment of the same income in the assessee's hands was not justified. The court found no substantial question of law arising from the ITAT's order.

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