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Section 4 of the income-tax act, 1961-Association of persons-Assessability of-Whether where share income from aop had been taxed in hands of members as individuals, same income could again be assessed in hands of aop-Held, no Facts For the relevant assessment year, the share income of the members of the assessee-AOP, was assessed directly in their hands, in their capacity as individuals. Subsequently, the ITO assessed the same income again in the hands of the AOP. The Tribunal, however, allowed the assessee's appeal against the aforesaid action of the ITO. On application under section 256(2): Held As per the CBDT circular of 24-8-1966 explaining the effect of the Supreme Court decision in CIT v. Murlidhar Jhawar & Puma Ginning & Pressing Factory [1966] 60 ITR 95 , once the ITO assesses an assessee directly on his share of income from an AOP, it is not open to him to assess the same income again in the hands of the AOP. As the circular is binding on the ITO, it is clear that he ITO was not entitled to make the impugned assessment again on the AOP. Case review CIT v. Murlidhar Jhawar & Puma Ginning & Pressing Factory [1966] 60 ITR 95 (SC) followed. Cases referred to CIT v. Murilidhar Jhawar & Purna Ginning & Pressing Factory [1966] 60 ITR 95 (SC), Laxmichand Hirjibhai v. CIT[1981] 128 ITR 747 (Guj.), Ellerman Lines Ltd. v. CIT [1971] 82 ITR 913 (SC) and Navnit Lal C. Zaveri v. K.K. Sen, AAC[1965] 56 ITR 198 (SC). IT APPLICATION NO. 108 OF 1983. R.J. Joshi and D.H. Parekh for the Applicant. R.C. Desai and R.H. Toprani for the Respondent. JUDGMENT KANIA, J.-This is an application under section 256(2) of the Income-tax Act, 1961 ('the Act'), for directing the Tribunal to refer to this Court for determination of the three questions set out in paragraph 5 of the application. The main question is whether the ITO was entitled to tax the respondent-assessee as an AOP. The assessment year involved is the assessment year 1976-77. The order of the assessment taxing the assessee as an AOP was passed on 20-3-1979. Prior to that, the same ITO had assessed the three members of the said association as individuals and taxed their shares in the same income…

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