Taxation of aop when share of profit transferred before tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2013 Here A Joint Venture(An AOP ) distributed share of profit to one of its co venturer without tax provisioning & the tax liability on the above share of profit before tax borne by the venturer.

Whether the above arrangement absolve the liability of the Joint Venture(An AOP ) under SEC-4 Of IT ACT ,1961 since tax has been paid by the constituent member of AOP i.e One of the Joint Venturer.

In case Joint Venture is liable under SEc -4 to pay tax on above pre tax share of profit then whether the Venturer who has already paid tax on such pre tax profit gets TAX Refund.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 July 2013 Tax paid by any assessee is refundable after meeting its tax liability.
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The liability is always borne by the members but it is to be paid through the AOP only.
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If the member has paid tax by quoting his PAN No in Challan, he can adjust the tax in discharging his tax liability or he will get refund of excess tax paid.
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If PAN No of AOP has been given in the challan- AOP will reimburse the same or adjust against his share in tax liability.
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