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Section 4 of the Income-tax Act, 1961 - Individual - Assessable as - Assessment years 1968-69 and 1972-73 - Whether if an association or a firm is taxed in respect of its income, same income cannot be charged again in hands of members individually - Held, yes FACTS The assessee was an individual and one of the heirs of C who died intestate. The ITO included the income from the assessee's share in the property left by the deceased, in the total income of the assessee. Before the AAC, the assessee contended that the income in question had already had been assessed as the income of an AP and as such the said income could not be again taxed in the hands of the assessee. The AAC rejected the contention. On further appeal, the Tribunal accepted the assessee's claim and allowed her appeal. On reference : HELD The Supreme Court in State of U.P. v. Raza Buland Sugar Co. Ltd. [1979] 118 ITR 50 had held that the principle that is applicable in tax statutes is that the income is subject to tax in the hands of the same person only once. Thus, if an association or a firm is taxed in respect of its income, the same income cannot be charged again in the hands of the members individually and vice versa. In the instant case, it was admitted that the income in question had been taxed in the hands of the AOP consisting of the assessee and other heirs of the deceased. The same income could not be again charged in the hands of the assessee. Therefore, the Tribunal was right in deleting the income accruing to the assessee from her share of the estate of her late husband. Note: The case was decided in favour of the assessee. CASE REFERRED TO State of U.P. v. Raza Buland Sugar Co. Ltd. [1979] 118 ITR 50 (SC). JUDGMENT Sohani, J.-By this reference under s. 256(1) of the I.T. Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in deleting the income accruing to the assessee from her share of the estate of her late husband ?" The material facts giving rise to this reference…

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