Whatever be the name, it is the intent that matters! Consortium/JV is an AOP and liable to pay Income Tax…

The Authority for Advance Ruling held that a joint venture can be treated as an association of persons (AOP) and is liable to be assessed as such under the Income Tax Act, 1961(“ITA”) when all the partners of J.V. have joined in for common purpose on their own volition to produce income which is shared in certain ratio. It was held that the fact that payments from the client get credited in the respective Bank accounts of the J.V. members will not be of much help to the applicant, because it is a J.V