CIT v. Indira Balakrishna

39 ITR 546Supreme Court of India1960#2453 most cited

What is CIT v. Indira Balakrishna authority for?

An Association of Persons (AOP) is formed when two or more persons voluntarily join for a common purpose to produce income, profits, or gains, and it is the AOP itself that is taxed.

47

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2024.

Also referred to as

CIT v. Indira Balakrishna · Association of Persons · AOP · common purpose · voluntary joining · income production · taxability of AOP · section 2(31)

Sections most often in play

Section 1961Section 131Section 132Section 139(1)Section 142(1)Section 143(2)Section 143(3)Section 153A

Issues it is cited on

self occupied propertysection 80lsection 2(31)section 23(2)section 23(1)interest on interestannual letting valueannual valuesection 22section 40a(3)share application moneyaddition u/s 68

Judgments citing CIT v. Indira Balakrishna

The Kumar Family Trust, Delhi vs. ACIT, Central Circle-4, Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2776/DEL/2022[2019-20]Status: DisposedITAT Delhi20 Nov 2024AY 2019-20

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…come, it is necessary to look into the general principles for determining whether the status of the trustees of a discretionary trust can be taken to be as "an association of persons" or as an "individual". The Supreme Court in CIT v. Indira Balkrishna [1960] 39 ITR 546, while considering what constitutes an association of persons, held that the word "association" means "to join in any purpose" or "to join in an action". Therefore, "association of persons" as used in section 2(31)( v) of the Income-tax Act, 1961, means an association in which two or more persons join in a common purpose or common action. The asso…

The Kumar Family Trust, Delhi vs. ACIT, Central Circle-4, Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2775/DEL/2022[2018-19]Status: DisposedITAT Delhi20 Nov 2024AY 2018-19

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…come, it is necessary to look into the general principles for determining whether the status of the trustees of a discretionary trust can be taken to be as "an association of persons" or as an "individual". The Supreme Court in CIT v. Indira Balkrishna [1960] 39 ITR 546, while considering what constitutes an association of persons, held that the word "association" means "to join in any purpose" or "to join in an action". Therefore, "association of persons" as used in section 2(31)( v) of the Income-tax Act, 1961, means an association in which two or more persons join in a common purpose or common action. The asso…

The Kumar Family Trust, Delhi vs. ACIT, Central Circle-4, New Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2774/DEL/2022[2017-18]Status: DisposedITAT Delhi20 Nov 2024AY 2017-18

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…come, it is necessary to look into the general principles for determining whether the status of the trustees of a discretionary trust can be taken to be as "an association of persons" or as an "individual". The Supreme Court in CIT v. Indira Balkrishna [1960] 39 ITR 546, while considering what constitutes an association of persons, held that the word "association" means "to join in any purpose" or "to join in an action". Therefore, "association of persons" as used in section 2(31)( v) of the Income-tax Act, 1961, means an association in which two or more persons join in a common purpose or common action. The asso…

The Kumar Family Trust, Delhi vs. ACIT, Central Circle-4, Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2773/DEL/2022[2016-17]Status: DisposedITAT Delhi20 Nov 2024AY 2016-17

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…come, it is necessary to look into the general principles for determining whether the status of the trustees of a discretionary trust can be taken to be as "an association of persons" or as an "individual". The Supreme Court in CIT v. Indira Balkrishna [1960] 39 ITR 546, while considering what constitutes an association of persons, held that the word "association" means "to join in any purpose" or "to join in an action". Therefore, "association of persons" as used in section 2(31)( v) of the Income-tax Act, 1961, means an association in which two or more persons join in a common purpose or common action. The asso…

The Kumar Family Trust, Delhi vs. ACIT, Central Circle-4, New Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2772/DEL/2022[2015-16]Status: DisposedITAT Delhi20 Nov 2024AY 2015-16

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…come, it is necessary to look into the general principles for determining whether the status of the trustees of a discretionary trust can be taken to be as "an association of persons" or as an "individual". The Supreme Court in CIT v. Indira Balkrishna [1960] 39 ITR 546, while considering what constitutes an association of persons, held that the word "association" means "to join in any purpose" or "to join in an action". Therefore, "association of persons" as used in section 2(31)( v) of the Income-tax Act, 1961, means an association in which two or more persons join in a common purpose or common action. The asso…

The Kumar Family Trust, Delhi vs. ACIT, Center Circle-4, Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2771/DEL/2022[2014-15]Status: DisposedITAT Delhi20 Nov 2024AY 2014-15

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…come, it is necessary to look into the general principles for determining whether the status of the trustees of a discretionary trust can be taken to be as "an association of persons" or as an "individual". The Supreme Court in CIT v. Indira Balkrishna [1960] 39 ITR 546, while considering what constitutes an association of persons, held that the word "association" means "to join in any purpose" or "to join in an action". Therefore, "association of persons" as used in section 2(31)( v) of the Income-tax Act, 1961, means an association in which two or more persons join in a common purpose or common action. The asso…

The Kumar Family Trust, Delhi vs. ACIT, Central Circle-4, New Delhi

In the result, appeal for AYs 2013-14 & 2014-15 are unabated and assessments are set aside due to no incriminating material found during the search and the appeals for the said assessment years are...

ITA 2770/DEL/2022[2013-14]Status: DisposedITAT Delhi20 Nov 2024AY 2013-14

Bench: Shri S. Rifaur Rahman & Shri Sudhir Kumar, Judicialmember

For Appellant: Shri Akkal Dudhwewala, CAFor Respondent: Ms. Sapna Bhatia, CIT DR
Section 132Section 139Section 143(2)Section 153ASection 22Section 23(2)

…come, it is necessary to look into the general principles for determining whether the status of the trustees of a discretionary trust can be taken to be as "an association of persons" or as an "individual". The Supreme Court in CIT v. Indira Balkrishna [1960] 39 ITR 546, while considering what constitutes an association of persons, held that the word "association" means "to join in any purpose" or "to join in an action". Therefore, "association of persons" as used in section 2(31)( v) of the Income-tax Act, 1961, means an association in which two or more persons join in a common purpose or common action. The asso…

Siemens Aktiengesellschaft, Mumbai vs. DDIT (It) 2(1), Mumbai

In the result, appeal of the assessee is allowed and appeal of the Revenue is dismissed

ITA 2153/MUM/2014[2009-10]Status: DisposedITAT Mumbai07 Jun 2024AY 2009-10

Bench: SHRI B R BASKARAN (Accountant Member), SHRI AMIT SHUKLA (Judicial Member)

Section 144CSection 144C(5)Section 153Section 9(1)(vi)

…judicial precedents to determine the characteristics of an AOP. The concept of when an AOP comes into existence can be fairly clear as a result of several Supreme Court decisions on the subject. The Supreme Court in the case of CIT v. Indira Balkrishna [1960] 39 ITR 546 (SC) has held that to constitute an AOP, earning of income by joining together in a venture and sharing of profits or loss is essential. Further the Supreme Court in the case of G. Murugesan & Bros. v. CIT [1973] 88 ITR 432 (SC) held that the finding members "joined for common purpose or common action" or they helped in producing income to form an…

Income Tax Officer, Jaipur vs. Rvcf Trust-II, Jaipur

In the result, the appeal of the Revenue is dismissed

ITA 198/JPR/2022[2011-12]Status: DisposedITAT Jaipur31 Oct 2022AY 2011-12

Bench: The Income Tax Appellate Tribunal, Jaipur Within 30 Days I.E. On Or Before 13.06.2022. In View Of The Above The Physical Appeal Was Filed On 19.05.2022 Well Before 12.06.2022 As Directed In The Said Mail.

For Appellant: Shri Anil Goyal (CA) &For Respondent: Shri Sanjay Dhariwal (CIT) a
Section 10Section 143(1)Section 143(2)Section 166Section 199Section 2(15)

…in section 2(31)(v) means an association in which two or more persons join in a common purpose or common action. The association must be one, the object of which is to produce income, profits or gains. Hon’ble Supreme Court in CIT v. Indira Balkrishna [1960] 39 ITR 546 while considering what constitutes an 'association of persons' held that the word 'association' means 'to join in common purpose' or 'to join in an action'. Therefore, 'association of persons' as used in section 2(31)( v) of the Act means an association in which two or more persons join in a common purpose or common action. e. Trustees and benefi…

M/S Rithwik Rk Joint Venture vs. Pr. CIT, Allahabad

In the result, both the appeals of the assessee are partly allowed

ITA 99/ALLD/2017[2012-2013]Status: DisposedITAT Allahabad26 Jul 2022AY 2012-2013

Bench: Shri.Vijay Pal Rao & Shri Ramit Kochar

For Appellant: Sh. Pawan Chakrapani, C.AFor Respondent: Sh. Ramendra Kumar Vishwakarma, CIT DR
Section 263

…dependent assessable entity different and distinct from its members and hence the profit or loss is required to be assessed in the hand of the AOP. The learned DR has relied upon the following decisions as under:- “C.I.T. Vs. Smt. Indira Balakrishanan, (1960) 39 ITR 546,551 (S.C.) C.I.T. Vs. Buldana District Main Cloth Importers Group, (1961) 42 ITR 172 (S.C.). Murugesan & Brothers Vs. C.I.T. (1973) 88 ITR 432 (S.C.). V. Shanmugam & Co. Vs. C.I.T. (1971) 81 ITR 310 (S.C.) Birla Tyres Vs. JCIT (2003) 80 TTJ 915 (Cal.-T) (T.M.)” 7. We have considered the rival submissions as well as relevant material on record.…

M/S. Rithwik Rk Joint Venture, Hyderabad vs. Principal Commissioner of Income Tax, Allahabad

In the result, both the appeals of the assessee are partly allowed

ITA 107/ALLD/2016[2011-12]Status: DisposedITAT Allahabad26 Jul 2022AY 2011-12

Bench: Shri.Vijay Pal Rao & Shri Ramit Kochar

For Appellant: Sh. Pawan Chakrapani, C.AFor Respondent: Sh. Ramendra Kumar Vishwakarma, CIT DR
Section 263

…dependent assessable entity different and distinct from its members and hence the profit or loss is required to be assessed in the hand of the AOP. The learned DR has relied upon the following decisions as under:- “C.I.T. Vs. Smt. Indira Balakrishanan, (1960) 39 ITR 546,551 (S.C.) C.I.T. Vs. Buldana District Main Cloth Importers Group, (1961) 42 ITR 172 (S.C.). Murugesan & Brothers Vs. C.I.T. (1973) 88 ITR 432 (S.C.). V. Shanmugam & Co. Vs. C.I.T. (1971) 81 ITR 310 (S.C.) Birla Tyres Vs. JCIT (2003) 80 TTJ 915 (Cal.-T) (T.M.)” 7. We have considered the rival submissions as well as relevant material on record.…

Mamania Family Trust, Mumbai vs. Asst CIT Cen Cir 41, Mumbai

In the result, the appeal filed by the assessee is dismissed

ITA 308/MUM/2014[2006-07]Status: DisposedITAT Mumbai21 Mar 2022AY 2006-07

Bench: Shri A. M. Alankamony, Am & Ms. Kavitha Rajagopal, Jm आयकरअपीलसं./ I.T.A. No. 308/Mum/2014 (निर्धारणवर्ा / Assessment Year: 2006-07)

For Appellant: None byFor Respondent: Shri C. T. Mathews, Ld. DR by
Section 115WSection 139(1)Section 143(3)

…e considered view that the Ld. CIT(A) has rightly decided the issue in the light of various judicial decisions. The Ld. CIT(A) has interpreted the meaning of AOP on a comparison with the Hon’ble Supreme Court decision in the case of CIT vs. Indira Balkrishna (39 ITR 546) (SC) with that of the subsequent amendment by explanation to section 2(31) wherein the AOP can be formed without the common objective of deriving income, profits or gains, thus concluding that private discretionary trust will come under the purview of AOP. In addition to this, the proviso to section 164(1) also states that under the circumstance…

Mr. B.Nagendra, Bellary vs. Deputy Commissioner of Income Tax, Bangalore

In the result, both the appeals by the assessee are partly allowed

ITA 1946/BANG/2016[2011-12]Status: DisposedITAT Bangalore17 Mar 2022AY 2011-12

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri G.S. Prashant, CAFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 132Section 132(1)(a)Section 143(3)Section 153A

…tion 2(31) of the Act, which includes an "Association of Persons" or "Body of Individuals", whether incorporated or not. However, there is no definition of AOP as such in the Act. The Apex Court decision in the case of CIT vs. Indira Balakrishnan, reported in 39 ITR 546 is an authority in so far as concept of AOP is concerned. ITA Nos. 1945 & 1946/Bang/2016 Page 16 of 32 27. He submitted that the essentials of an AOP as per the ratio of the Apex Court decision are as follows:- a) Two or more persons joining in a common purpose. b) The purpose of such joining is to produce income profits or gains. c) The combina…

Mr. B.Nagendra, Belgium vs. Deputy Commissioner of Income Tax, Bangalore

In the result, both the appeals by the assessee are partly allowed

ITA 1945/BANG/2016[2010-11]Status: DisposedITAT Bangalore17 Mar 2022AY 2010-11

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri G.S. Prashant, CAFor Respondent: Dr. Manjunath Karkihalli, CIT(DR)(ITAT), Bengaluru
Section 132Section 132(1)(a)Section 143(3)Section 153A

…tion 2(31) of the Act, which includes an "Association of Persons" or "Body of Individuals", whether incorporated or not. However, there is no definition of AOP as such in the Act. The Apex Court decision in the case of CIT vs. Indira Balakrishnan, reported in 39 ITR 546 is an authority in so far as concept of AOP is concerned. ITA Nos. 1945 & 1946/Bang/2016 Page 16 of 32 27. He submitted that the essentials of an AOP as per the ratio of the Apex Court decision are as follows:- a) Two or more persons joining in a common purpose. b) The purpose of such joining is to produce income profits or gains. c) The combina…

Bank of India, Mumbai vs. Asst. CIT-2(1)(1), Mumbai

In the result, the appeal of the Assessing Officer is partly allowed in the terms indicated above

ITA 1767/MUM/2019[2015-16]Status: DisposedITAT Mumbai11 Dec 2020AY 2015-16
Section 115Section 11JSection 143(3)Section 90Section 90(3)

…ven its contextual meaning. It is for this reason that the definition or interpretation section generally contains an expression similar to the one used at the beginning of section 2 of the Act. The Supreme Court in the case of CIT v. Indira Balkrishna [1960] 39 ITR 546 held— ". . .The meaning to be assigned to the words must take colour from the context in which they occur. . . ." (p. 551) The Apex Court again in the case of Dy. Chief Controller of I. & E. v. K.T. Kosalram 1999 (110) ELT 366 has held as follows— ". . .What particular meaning should be attached to words and phrases in a given instrument is usuall…

M/S Shree Baba Gajja Ji Jain Society (Regd.), Jalandhar vs. Income Tax Officer, (Examption), Jalandhar

In the result, the appeal filed by the assessee stand allowed for statistical purposes

ITA 539/ASR/2017[2014-15]Status: DisposedITAT Amritsar15 Jan 2020AY 2014-15

Bench: Sh. N.K.Choudhry & Dr. A.L.Saini

For Appellant: Sh. Ashray Sarna (Ld. C. A.)For Respondent: Sh. Charan Dass (Ld. D. R.)
Section 10Section 12ASection 142(1)Section 143(3)Section 250(6)

…and as the words occurs in Income Tax Act, which imposes a tax on income, the association must be one the object of which is to produce income, profits or gains. We rely upon the decision of the Hon'ble Supreme Court in the case of CIT Vs. Indira Balkrishna [39 ITR 546 (SC)]. The learned CIT (Appeals) considering the material on record gave a specific finding of fact that the assessee society was meant for charitable and religious purposes and was totally devoted to the Buddhist temple/monastery in the year under consideration. The assessee was thus at the stage of construction of the temple and has not carried…

Ronak Welfare Trust, Adilabad vs. Income Tax Officer, Ward-1, Adilabad

In the result, appeals filed by the respective assessees are allowed

ITA 1486/HYD/2018[2015-16]Status: DisposedITAT Hyderabad15 Mar 2019AY 2015-16

Bench: Smt. P. Madhavi Devi

For Appellant: Shri A. SrinivasFor Respondent: Shri D.J.Prabhakar Anand
Section 143(1)Section 154Section 167B

…eing a Trust and beneficiary being a single person and the Trustees not being the beneficiaries, the AOP has to be taxed at individual tax rates only. In support of this contention, he placed reliance upon the following case law: i) CIT vs. Indira Balakrishna 39 ITR 546 (S.C) Page 4 of 9 ITA Nos1472 to 1486 of 2018 Shreya Welfare Trust and others Adilabad. ii) COT vs. Marsons Beneficiary Trust – 188 ITR 224 (Bombay) iii) CIT vs. Shree Krishna Bandar Trust 201 ITR 989 Calcutta iv) DIT vs. Shardaben Bhagubhai Maftlal-247 ITR 1 Bombay 6. Thus, even on merits, according to him, the order u/s 154 is not sustainabl…

Ronak Welfare Trust, Adilabad vs. Income Tax Officer, Ward-1, Adilabad

In the result, appeals filed by the respective assessees are allowed

ITA 1485/HYD/2018[2014-15]Status: DisposedITAT Hyderabad15 Mar 2019AY 2014-15

Bench: Smt. P. Madhavi Devi

For Appellant: Shri A. SrinivasFor Respondent: Shri D.J.Prabhakar Anand
Section 143(1)Section 154Section 167B

…eing a Trust and beneficiary being a single person and the Trustees not being the beneficiaries, the AOP has to be taxed at individual tax rates only. In support of this contention, he placed reliance upon the following case law: i) CIT vs. Indira Balakrishna 39 ITR 546 (S.C) Page 4 of 9 ITA Nos1472 to 1486 of 2018 Shreya Welfare Trust and others Adilabad. ii) COT vs. Marsons Beneficiary Trust – 188 ITR 224 (Bombay) iii) CIT vs. Shree Krishna Bandar Trust 201 ITR 989 Calcutta iv) DIT vs. Shardaben Bhagubhai Maftlal-247 ITR 1 Bombay 6. Thus, even on merits, according to him, the order u/s 154 is not sustainabl…

Ronak Welfare Trust, Adilabad vs. Income Tax Officer, Ward-1, Adilabad

In the result, appeals filed by the respective assessees are allowed

ITA 1484/HYD/2018[2013-14]Status: DisposedITAT Hyderabad15 Mar 2019AY 2013-14

Bench: Smt. P. Madhavi Devi

For Appellant: Shri A. SrinivasFor Respondent: Shri D.J.Prabhakar Anand
Section 143(1)Section 154Section 167B

…eing a Trust and beneficiary being a single person and the Trustees not being the beneficiaries, the AOP has to be taxed at individual tax rates only. In support of this contention, he placed reliance upon the following case law: i) CIT vs. Indira Balakrishna 39 ITR 546 (S.C) Page 4 of 9 ITA Nos1472 to 1486 of 2018 Shreya Welfare Trust and others Adilabad. ii) COT vs. Marsons Beneficiary Trust – 188 ITR 224 (Bombay) iii) CIT vs. Shree Krishna Bandar Trust 201 ITR 989 Calcutta iv) DIT vs. Shardaben Bhagubhai Maftlal-247 ITR 1 Bombay 6. Thus, even on merits, according to him, the order u/s 154 is not sustainabl…

Shrestha Welfare Trust, Adilabad vs. Income Tax Officer, Ward-1, Adilabad

In the result, appeals filed by the respective assessees are allowed

ITA 1483/HYD/2018[2015-16]Status: DisposedITAT Hyderabad15 Mar 2019AY 2015-16

Bench: Smt. P. Madhavi Devi

For Appellant: Shri A. SrinivasFor Respondent: Shri D.J.Prabhakar Anand
Section 143(1)Section 154Section 167B

…eing a Trust and beneficiary being a single person and the Trustees not being the beneficiaries, the AOP has to be taxed at individual tax rates only. In support of this contention, he placed reliance upon the following case law: i) CIT vs. Indira Balakrishna 39 ITR 546 (S.C) Page 4 of 9 ITA Nos1472 to 1486 of 2018 Shreya Welfare Trust and others Adilabad. ii) COT vs. Marsons Beneficiary Trust – 188 ITR 224 (Bombay) iii) CIT vs. Shree Krishna Bandar Trust 201 ITR 989 Calcutta iv) DIT vs. Shardaben Bhagubhai Maftlal-247 ITR 1 Bombay 6. Thus, even on merits, according to him, the order u/s 154 is not sustainabl…