TMI Blog1988 (1) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... business as per its order dt. 9th April, 1973. There is no dispute that the Joint Receivers are the representative assessee within the meaning of s. 161(1) of the IT Act, 1961 (in short, the Act) and that the income of the business is to be assessed as one unit in the status of AOP. The dispute pertains to the determination of the tax liability of the representative assessee under s. 161(1) of the Act. The ITO, it has been pointed out in the grounds of appeal, has correctly made the assessment under s. 143(3)/161(1) on the representative assessees, but he was in error in determining the tax of the representative assessees at the rates applicable to the 'Collective Income' determined in the assessment of Rs. 70,870. It has been pointed in g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een correctly framed in the status of 'AOP'. The tax, according to the learned departmental representative was to be computed on the total income determined on the 'AOP' as the unit and not in the individual shares of the three members forming the AOP inasmuch as the business was being carried on by the Joint Receivers in the name of M/s AOP inasmuch as the business was being carried on by the Joint Receivers in the name of M/s Barick Screen Corporation. In this content, our attention was drawn to the following observations of their lordships in these cases of N.V. Shanmugham and Co. which reads as follows: "It is not denied that the business was carried on by the receivers on behalf of the erstwhile partners of the firm and that conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22, which is analogous to the provisions of s. 161(1). It was held in that case that "Sec, 41 empowers the Revenue to levy the tax that could have been levied on the person who earned the profits or one or the other of his representatives mentioned in that section and recover the same from that representative in the like manner and to the same amount as it would be leviable upon and recoverable" from the person on whose behalf such profits are recoverable and all the provisions of the Act shall apply accordingly. Sec. 41 of the Act does not impose pay separate charge. It only empowers the Revenue to levy and collect a tax due from a person or persons, from his or their representatives. Hence, there is no question of either the receivers bei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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