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AOP & BOI

vishnupriya (CA Final) (1418 Points)

23 April 2010

If 2 or more persons jointly own a property in which their share is definite & ascertainable, the income from that property is assessable individually naming the parties as co-owners. When the share is definite & ascertainable why not they can be assessed as AOP?

Please any one explain me difference between AOP & BOI

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Amir (Learner) (4016 Points)
Replied 23 April 2010

Dear Vishnu,

Rgarding ur First query - I think it is based on Sec 26 -

Luk AOP is considered as a separate assessee distinct from its members.

The term "AOP" is of wider meaning & covers "Co -owernership" as well.

Ya u r rite Sec 26 is mandatory becos of the use of the word "shall". Further this point was also comfirmed by Honbl HC of Calcutta.

Sec 26 is a section which is beneficial to assessee. So Bhai lets be satisfied with the fact that Law has given a mandatory force to a beneficial section..........:))

Regarding ur second query - Difference between AOP & BOI -

Now I will show u magic -Differnce will be clear on its own just expand these terms -

Association of Persons

Body of Individuals

Now "Persons" as defined u/s 2 includes - Individual, Fiirm, Company,etc .......even AOP..........:))

"Individuals" not defined but I guess not required.................:))

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