Double taxation of the same income in AOP and member hands is impermissible; individual reassessment fails.

Income already assessed in the hands of an association of persons cannot be taxed again in the hands of an individual member for the same income. The governing principle is that the same income may be assessed only once in the hands of the same taxable source, so a second assessment against a member is impermissible. The reassessment in the assessee's individual hands was therefore not allowed, and deletion of the income from her assessment was upheld.

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Issues: Whether income already assessed in the hands of an association of persons could again be assessed in the hands of a member in respect of the same income.

Analysis: The income in question had already been taxed as the income of an association of persons consisting of the assessee and other heirs. The governing principle in tax law is that the same income can be subjected to tax only once in the hands of the same taxable source, so that income assessed in the hands of an association of persons cannot again be charged in the hands of its members individually, and vice versa.

Conclusion: The reassessment in the hands of the assessee was not permissible, since the same income had already been taxed in the hands of the association of persons.

Final Conclusion: The reference was answered in favour of the assessee and the deletion of the income from her individual assessment was upheld.

Ratio Decidendi: Income which has already been assessed in the hands of an association of persons cannot be taxed again in the hands of an individual member in respect of the same income.

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