ACIT v. Shree Ami Office Owner’s Association. (2023) 199 ITD 670 (Ahd) (Trib.)

S. 4 : Charge of income-tax-Association of person-Purchase of property-Allotment letters issued to members-Members are real owners-Liable to be taxed in the hands of members and not in the hands of AOP. [S. 2(31)(v)]

Assessee, an association of persons (AOP), purchased a property. Assessee got permission to do construction on said property and later sold it. Members of assessee-AOP in their return, offered consideration received from sale of said property.  Assessing Officer held that income from sale of property is  taxable in hands of AOP. CIT (A) held that the members of assessee-AOP were real ‘owners’ of property and, accordingly, income from sale of property is  liable to be taxed in hands of members and not in hands of AOP. Tribunal affirmed the order of the CIT(A). (AY. 2007-08)