1985 (5) TMI 29

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.... the assessee's share from an association of persons without the association itself having been assessed to tax ? " The facts out of which the question arises are the same in both the cases and can be briefly stated. The assessee was a member of an association of persons consisting of four persons, namely, Madan Lal Lamba, Kailash Lamba, Harish Lamba and Jagdish Lamba. They ran a guest house at 9, Kitchenar Road, New Delhi, during the period November 15, 1961, to April 30, 1962, for the delegates to the World Council of Churches at New Delhi. It is common ground that the four persons formed an association and that they had equal shares in the profit earned by the association in the above activities. The share of profit of each of the two....

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.... on which it is chargeable to tax, each member of the association also derives income in respect of which, being a person, he is also chargeable. There is nothing in the present Income-tax Act which precludes the taxation of both the association of persons and the individual, the former in respect of its income and the latter in respect of his share of the income from the association. Of course, the some income is not intended to be subjected to tax twice and this double taxation is avoided by the provision contained in section 86(v). This clause provides that where the assessee is a member of an association of persons, income-tax is not payable by him in respect of any portion of the amount which lie is entitled to receive from the associa....