1995 (6) TMI 84

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....her AOP called " Maxima Andal Enterprises " (hereinafter referred to as the " main AOP "). It is common ground that the income of the main AOP was brought to charge in its hands. The share of the small AOP of the income of the main AOP was chargeable to tax in its hands, subject of course to the provisions of section 86(v) of the Act. Since the small AOP did not have any income other than its share of the income of the main AOP, the application of section 86(v) meant that no tax was payable by the small AOP. The assessments of the small AOP were made on the said basis. 3. In the case of the assessees before us, their share of the income of the small AOP was chargeable to tax in their hands subject of course to the provisions of sectio....

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....horities. According to him, since the only source of income of the small AOP was its share of the income of the main AOP, rebate under section 86(v) of the Act was rightly allowed to the assessee before us. The second limb of Shri Balasubramaniam's argument was that, in any event, this was not a fit case for invoking the provisions of section 154 of the Act because the issue involved is a debatable one. 6. On her part, Smt. Leelawathi Mohapatra, the learned Departmental Representative, strongly supported the impugned orders of the lower authorities. She contended first that in the assessment as originally made on the assessees before us, rebate under section 86(v) of the Act came to be allowed under the mistaken impression or misconce....

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....e-tax shall not be payable by an assessee in respect of the following--- (v) if the assessee is a member of an association of persons, or a body of individuals other than a Hindu undivided family, a company or a firm, any portion of the amount which he is entitled to receive from the association or body on which income-tax has already been paid by the association or body." (Emphasis supplied) (Explanation to section 86(v) is not reproduced here as it is not relevant). A plain reading of the said provisions will indicate that the benefit contemplated by them will be available to an assessee only if the prescribed conditions are satisfied. In relation to an assessee who is a member of an AOP the conditions are : (a) the assessee m....