TMI Blog2003 (11) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... of income is share as partner in the firm viz., M/s. Pak Trade Centre. The said firm for the year under consideration has been assessed in the status of AOP by way of assessment order dated 5-3-1998 passed under the provisions of section 143(3) of the Income-tax Act, 1961. According to the said assessment order the share of the loss allocated to the assessee-company has been computed at Rs. 3,26,221. The assessee claimed set off of its allocated loss against its other income. The set off was denied by the Assessing Officer as per his observations in paragraph 5 at page 2A of the assessment order. For the sake of convenience the same are reproduced below : "Share of loss of AOP M/s. Paks Trade Centre : Assessee has debited Rs. 3,51,540 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sources in that year. 12. On a consideration of this issue, I am afraid, I am not able to persuade myself to agree with the reasoning advanced on behalf of the appellant. The basis of charges to income-tax is covered under the provisions of sub-section (1) to section 4, whereby income-tax is charged for any assessment year at a prevailing rate in respect of total income of the previous year of every person. Sub-section (31) of section 2 of the Income-tax Act, defines person to include inter alia , an association of persons or body of individuals. Whether incorporated or not. Therefore, since the AOP by the name of Paks Trade Centre was a separate taxable entity, the Assessing Officer has correctly denied the set off of share of loss from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ission or remuneration aforesaid paid to the member by the association or body in respect of the previous year shall be added to that amount, and the result shall be treated as the member s share in the income of the association or body; ( c )where the amount apportioned to a member under clause ( a ) is a loss, any interest, salary, bonus, commission or remuneration aforesaid paid to the member by the association or body in respect of the previous year shall be adjusted against that amount, and the result shall be treated as the member s share in the income of the association or body. (2) The share of a member in the income or loss of the association or body, as computed under sub-section (1), shall, for the purposes of assessment, be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ital asset (other than a short-term capital asset) is a loss, the assessee shall be entitled to have the amount of such loss set off against the income, if any, as arrived at under a similar computation made for the assessment year in respect of any other capital asset not being a short-term capital asset. 6. Referring to the above-mentioned sections, it was contended that the share of assessee as a member of AOP was determined and has also been determined in the assessment order passed under section 143(3) in the case of AOP. Therefore, in accordance with the provisions of section 67A(2) for the purposes of assessment of assessee has to be apportioned under the same head. The loss computed in the hands of AOP is in respect of business. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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