income from sales of land

This query is : Open

CA Hemant T Dewani (Querist)
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24 November 2008 four persons are cometoghethere purchae a land & there shares are equle after some time they sold the same land & take ther share from purchasers independently the AO assessed as an AOP because they are come toghether for purchase & sales of land
whether AO is right to assessed as an AOP or not
give the case laws or citations
thanks

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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24 November 2008 It will taxable as AOP if the sale of land and payment is also on the same time.

If the land is registered on the name of all 4 persons separately and share is fixed in the registry. Also the Buyer has made contract with all parties separately. Only then it cannot be treated as AOP.