05 December 2019
My clients who is running Hallmarking business and they want to create an AOP in the name of Hallmarking Association of Karnataka . The objective of this AOP is protect the interest of members etc. (Not for Profit). The income is only membership fees received from members. Now my query is can they form an AOP? If yes then ok. Otherwise what are the other options for this case to create an association in name of Hallmarking Association of Karnataka ???
06 December 2019
Sir but Andhra Pradesh high court in the case of Deccan Wine and General Stores Vs. CIT laid down the principals governing an AOP by stating that it is clear that an AOP does not mean any and every combination of persons, it is only when they associate themselves in Income producing activity that they become an AOP. Now my question is that in my case AOP is not producing any income except membership fees, then also can they form an AOP ????