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2011 (7) TMI 1165 - AT - Income TaxDeduction of TDS as per Section 194C(2) - Two member companies of an AOP entered into a JV, for a project - Only duty entrusted to the AOP was filing of tender regarding such project - After getting the contract these two member companies executed the contract, accordingly, the amount received was shared by them - CIT(A) invoked Sec 194C(2) regarding such amount. HELD THAT:- While considering the case laws mentioned by Assessee, we observe that, in the case of COMMISSIONER OF INCOME TAX VERSUS. M/S. AMBUJA DARLA KASHLOG MANGU TRANSPORT CO. OP. SOCIETY & OTHERS [2009 (10) TMI 558 - HIMACHAL PRADESH HIGH COURT], the Hon'ble Himachal Pradesh High Court has held that the society is nothing but collective name for the members. The contract entered by the society is for the benefit of the constituent members and there is no contract between its members and society, hence, sec. 194C(2) has no application. In the present case, the assessee is a AOP of its partners (members) and the role of the AOP is only to secure the contract for the benefit of the members. There was no contract or sub-contract in between them. Also, the other case referred by Assessee, DATTA DIGAMBAR SAHAKARI KAMGAR SANSTHA LTD. VERSUS ASSISTANT COMMISSIONER OF INCOME-TAX [2000 (9) TMI 250 - ITAT PUNE] is taken into consideration. In view of our specific finding that there is no contract or subcontract has existed in between the assessee and its JV partners and following the above judicial precedents, the learned CIT(A) was not justified in invoking section 194C(2) to the assessee's case. We, therefore, set aside the order passed by the CIT(A) and appeal filed by the assessee is allowed.
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