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ajay lakhiwal (Student CA Final ) (30 Points)

18 December 2012

what is the difference between body of individual and association of person .

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19 Replies

CA Manish (Job) (5264 Points)
Replied 18 December 2012

An AOP may consists of non individual also but a BOI has to consisits of only individual.

shivaji prasad bhimavarapu (CHARTERED ACCOUNTANT) (2391 Points)
Replied 18 December 2012

Nice question.Body of individuals can be only individuals. Association of Persons- you can see the definition of Person,viz.,any individual,firm,company,artificial judicial person etc.,, Association of person may consist of such persons..

HARPREET SINGH (Chartered Accountant) (79 Points)
Replied 18 December 2012

Manish, Shivaji both are correct.

CA Srikanth Yadav (Chartered Accountant) (3162 Points)
Replied 18 December 2012

@ Shivaji and Manish:

You are only saying the difference.

But what is the real crux to decide, whether its an AOP or BOI?

A BOI consists of only individuals and an AOP may also consist of only individuals. Then if an association consists of only individuals, how can you say whether its an AOP or a BOI?

Waiting for your reply!

Thanks!

Rishimon Khan (Senior Executive) (26 Points)
Replied 19 December 2012

@ shrikant, good point

however i believe the crux is based on the oppertunity available in case of AOP and not the way how it has been used or formed

satish kumar voleti (A.C.A., (ICWAI)) (1686 Points)
Replied 19 December 2012

The 2 basic differences between AOP and BOI are:

a) In BOI there are only individuals but in AOP there can be any type of persons.

b) BOI is creation of law whereas AOP can be created by different persons coming together for doing some income producing activity on the voluntary basis.

Sonu Kumar (Account Manager) (665 Points)
Replied 19 December 2012

Agree with Above All

Poonam (CS,Mcom CA FINAL) (512 Points)
Replied 19 December 2012

An AOP means a group of persons (whether individuals, HUF, companies, firms, etc.) who join together for common purpose(s). Every combination of person cannot be termed as AOP. It is only when they associate themselves in an income-producing activity then they become AOP. Whereas, BOI means a group of individuals (individual only) who join together for common purpose(s) whether or not to earn income.

In case of BOI, only individuals can be the members, whereas in case of AOP, any person can be its member i.e. entities like Company, Firm etc. can be the member of AOP...

In case of an AOP, members voluntarily get together with a common will for a common intention or purpose, whereas in case of BOI, such common will may or may not be present.

2 Like

shibu (Accountant) (325 Points)
Replied 19 December 2012

Persons only Include Individuals - for Association of Persons

Body of Individuals - means only individuals

CA SUNIL SURI (chartered accountant) (345 Points)
Replied 19 December 2012

In BOI there are only individuals....

but in AOP there can be any type of persons.

manoj kumar (student) (41 Points)
Replied 19 December 2012

Nice ,

Miss Poonam,u have very nicely cleared the difference between AOP & BOI.

Most of the students remain confused in it even upto their final.

vishaal (PQR) (21 Points)
Replied 19 December 2012

Hi,

One of our Clients has availed the facility in Feb 2011 but Deed of Hypothecation was not filed with ROC till date. Now he is claiming that he will reexecute it again by paying stamp duty applicable in Maharashtra but does not want to go to CLB. is this possible?

If meanwhile somebody elese has filed the charge on the same assets, how will it affect our charge?

Please opine