2015 (8) TMI 769

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.... referred to this Court for its opinion by the Income Tax Appellate Tribunal ('ITAT') as per the Statement of Case dated 18th July 2001 reads as under: "Whether on the facts and in the circumstances of the case the Tribunal was right in law in holding that the order passed by the Assessing Officer on 31.12.1990 in respect of the assessee was neither erroneous nor prejudicial to the interest of ....

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.... of the above loss of the joint venture against the profit of the Assessee as a business loss by the AO on the ground that the AO could have computed the loss of the AOP only after the AOP filed its own return. The AO's action was held to be without jurisdiction and prejudicial to the interest of the Revenue. The ITAT by its order dated 31st October 1996 reversed the order of the CIT (A) and held ....

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.... AOP cannot be taxed individually in respect of the income of the AOP". It was held that as a natural corollary "the loss of an AOP also cannot be regarded as the loss of its members individually". 5. The above position does not appear to have undergone change with the introduction of Section 67-A in the Act with effect from 1st April 1989. Section 67-A is titled "Method of computing a member&#....

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....eals with set off or carry forward of share of loss of a partner in a registered firm do not find place in section 67A, because there are no provisions in the Income-tax Act for the set off or carry forward of the share of loss of a member in an association or body in his own assessment." 6. It may also be noted that under Section 86 of the Act it is provided that when the Assessee is a member ....