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2017 (11) TMI 1605 - HC - Income TaxStatus of the assessee - Partnership or AOP - no agreement between the persons to constitute a partnership firm as required under section 4 of the Partnership Act - Held that:- The status of an unregistered partnership cannot be bestowed on the appellant- assessee. The order of the authorities under the Act, i.e., Assessing Officer, Deputy Commissioner of Income-tax (Appeals) as well as the Tribunal holding that the applicant-assessee is an AOP and not unregistered firm is justified. - Decided in favour of the respondent-Revenue Shares of the persons carrying on the business indefinite and unspecified - Held that:- We note that the order of the Tribunal dated March 7, 1993 specifically refers to the statement made by Shri Satish Dongare and Shri Anand Meshram members of the AOP who have specifically denied any knowledge of their share in the applicant-assessee, i.e., AOP. In terms of section 167 of the Act as in force during the subject assessment year where individual shares of the members of an AOP in the whole or in part is indeterminate/unknown then tax would be charged on such AOP at the maximum marginal rate. In the present case, as is evident from the order of the Tribunal dated March 7, 1993, it is clear that one of its members namely Mr. Satish Dongare disputes he is a partner and states his father is one and even does not indicate his share. The other member, viz., Mr. Anand Bajirao Meshram clearly states that he not aware of his share in the firm. Thus, in terms of section 167 the share of the members of AOP are indeterminate at least in part due to the unequivocal statement of Mr. Anand Meshram and Mr. Satish Dongare. In such case the whole of the income of such an AOP is to be taxed at the maximum marginal rate, as being an AOP with indeterminate share. - Decided in favour of revenue
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