Syndicate profits taxable in syndicate's hands; individual's income not to be clubbed with AOP's share The SC upheld the HC's decision that profits attributable to an Association of Persons (syndicate) are not to be clubbed with the individual assessee's ...
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Syndicate profits taxable in syndicate's hands; individual's income not to be clubbed with AOP's share
The SC upheld the HC's decision that profits attributable to an Association of Persons (syndicate) are not to be clubbed with the individual assessee's income; the syndicate's share of profit is taxable in the hands of the syndicate (AOP) and cannot be included in the assessee's personal income. The HC order was affirmed as correct.
Delay in filing was condoned and the matter was heard. The Court held that "The income of the Association of Persons (Syndicate) cannot be clubbed with the assessees." On that basis the Court concluded that the High Court had not erred in passing the impugned order. Consequently the petition was dismissed and any pending applications were disposed of. The decision affirms that income attributable to an AOP characterized as a syndicate is distinct for tax/clubbing purposes from the individual assessees' income, thereby negating the basis for clubbing in this case and leaving the High Court's determination intact.
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