https://www.taxtmi.com/caselaws?id=29414 Promoters who collected share money for a proposed co-operative society were found not to constitute an association of persons or body of individuals because they acted only for a limited formation purpose and not with a common income-producing intent. The interest on the deposited funds was also not treated as diverted by overriding title, since the contributors retained the beneficial entitlement through an agency relationship rather than any post-accrual diversion from the promoters. On that basis, the interest income was not assessable in the promoters' hands under section 56 of the Income-tax Act, 1961, and the reference was answered against the revenue. en-us Wed, 17 Feb 1982 00:00:00 +0530 Fri, 12 Mar 2010 16:29:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29414 Promoters who collected share money for a proposed co-operative society were found not to constitute an association of persons or body of individuals because they acted only for a limited formation purpose and not with a common income-producing intent. The interest on the deposited funds was also not treated as diverted by overriding title, since the contributors retained the beneficial entitlement through an agency relationship rather than any post-accrual diversion from the promoters. On that basis, the interest income was not assessable in the promoters' hands under section 56 of the Income-tax Act, 1961, and the reference was answered against the revenue. Case-Laws Income Tax Wed, 17 Feb 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29414