Syndicate Income Cannot Be Taxed in Hands of AOP Members: SC

PCIT (Central) Vs Harmindar Singh Bhatia (Supreme Court of India) Supreme Court affirmed the Madhya Pradesh High Court’s decision holding that income earned by various liquor “syndicates,” treated as Associations of Persons (AOPs), could not be clubbed and assessed in the hands of the individual assessee. The Supreme Court noted succinctly that the income of the AOP/syndicates cannot be assessed in the hands of the assessee and therefore upheld the High Court’s ruling, dismissing the Revenue’s petition. The High Court had considered a batch of appeals filed under Section 260A of the ...