What Is Agreement Of Association Of Persons

It can be seen that a PDO is formed and not created. An AOP can either register or not be registered. The association of people usually means that two or some people come together and form an association whose goal is to achieve the same goal. It should be noted that the word “person” includes any person, whether it is a HUF, individuals, etc. Below is an example of an articulation agreement. Actual conditions and course equivalencies vary by program. Anything highlighted in yellow requires information specific to the agreement (name of the partner institution, in short, an association of persons can apply for the association of persons, which exists under the following conditions. The information referred to in article 31 of ยง 2 of the Act with effect from 1. The Explanatory Note inserted in April 2002 provides that an association of persons is to be considered as a person, whether or not it is constituted for the purpose of earning income. In other words, it is not absolutely necessary for a PDO to necessarily bring income. Therefore, an association of persons (AOP) can have as members companies, enterprises, mixed families and associations (MMIpoh vCIT (67 ITR 106)).

Clearly, companies entering into a joint venture may also be an evaluable entity as a PDO, as held in Ganga Metal Refining CoPte Ltd vCIT (67 ITR 771). In various court decisions, the courts have pronounced the essential elements that make up a PDO. In fact, the words personal association have not been used in a technical sense, but must be interpreted in their ordinary simple sense. Therefore, the only difference between the PDO and the BOI is that its members are composed. AOP / BOI can be formed by the simple conclusion of a title containing the objectives, the names of the members, the share of the members in the profits, the date of incorporation, their rules, the statutes, the frequency of meetings of the members or administrative persons, the management powers, the amount of capital introduced by the members, etc. The Supreme Court of Andhra Pradesh established the principles of a PDO in one of its cases. It makes it clear that an association of people does not necessarily mean any combination of people. It is only applicable if the persons concerned join an income-generating activity. People must join forces to participate in such an undertaking, and the commitment must be made according to the common voluntary will of the people who make up the association. Therefore, there are obvious differences between associations of persons and legal persons. A person in AOP can be a company or a single person.

The term person may include any association, entity of individuals or companies, whether registered or not. However, in a BOI, only people can register with the intention of earning a certain income. Therefore, we can say that the BOI consists only of natural persons, while a PDO could include legal entities. The dictates in the case of Deccan Wine and General Stores vCIT (106 ITR 111) are very revealing. Justice Chinnappa Reddy, who spoke on behalf of the Supreme Court of Andhra Pradesh, highlighted the distinction between a PDO and a set of individuals, noting that a union of persons does not mean any combination of persons.