CA Shruti kuchhal (CA ) (427 Points)
09 February 2011An AOP comprising of two members owns an urban land valuede Rs. 60.00 Lakhs as on the valuation date and there share is indetriminate.
How will be the land value will be distributed between the two members because as per sec 21AA if the share of members are indetriminate or unknown then the wealth tax will be levied in the like manner and to the same extent as applicable to an individual and in that case also we need to distribute the value of land between two members?
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 10 February 2011
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21AA. ASSESSMENT WHEN ASSETS ARE HELD BY CERTAIN ASSOCIATIONS OF PERSONS. - (1) Where assets chargeable to tax under this Act are held by an association of persons, other than a company or co-operative society, or society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India and the individual shares of the members of the said association in the income or assets or both of the said association on the date of its formation or at any time thereafter are indeterminate or unknown, the wealth-tax shall be levied upon and recovered from such association in the like manner and to the same extent as it would be leviable upon and recoverable from an individual who is a citizen of India and resident in India for the purposes of this Act. (2) Where any business or profession carried on by an association of persons referred to in sub-section (1) has been discontinued or where such association of persons is dissolved, the Assessing Officer shall make an assessment of the net wealth of the association of persons as if no such discontinuance or dissolution had taken place and all the provisions of this Act, including the provisions relating to the levy of penalty or any other sum chargeable under any provision of this Act, so far as may be, shall apply to such assessment. (3) Without prejudice to the generality of the provisions of sub-section (2), if the Assessing Officer or the Deputy Commissioner (Appeals) or the Commissioner (Appeals) in the course of any proceeding under this Act in respect of any such association of persons as is referred to in sub-section (1) is satisfied that the association of persons was guilty of any of the acts specified in section 18 or section 18A, he may impose or direct the imposition of a penalty in accordance with the provisions of the said sections. (4) Every person who was at the time of such discontinuance or dissolution a member of the association of persons, and the legal representative of any such person who is deceased, shall be jointly and severally liable for the amount of tax, penalty or other sum payable, and all the provisions of this Act, so far as may be, shall apply to any such assessment or imposition of penalty or other sum. (5) Where such discontinuance or dissolution takes place after any proceedings in respect of an assessment year have commenced, the proceedings may be continued against the persons referred to in sub-section (4) from the stage at which the proceedings stood at the time of such discontinuance or dissolution, and all the provisions of this Act shall, so far as may be, apply accordingly.
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AnandKumar
(Chartered Accountant)
(203 Points)
Replied 14 February 2011
hi shruti
in this case AOP will be deemed as assessee (as the share of Members is indertiminate) and wealth tax shall be levied on AOP as if it is Citizen of India and resident in India.
means all the provisions applicable to Individual who is citizen of India will be made applicable to AOP & Tax will be collected from AOP. Nothing shall be included in the hands of Members in this case
(PERSONAL OPINION)
CAclubindia
