Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (5) TMI 636 - AT - Income TaxNon deduction of TDS - Consortium of Joint Venture - Held that:- On an understanding of the concept of the "Joint Venture" and the terms of agreement between the members of the present case the consortium of Joint Venture has been formed only to procure the contract works. By way of the agreement, the parties have only regulated the relationship inter se with respect to their joint responsibility that existed in relation to the Principal, viz., M/s Konkan Railway. In reality both the parties have divided the contract works between themselves and they have executed their share of work on their own risks. AO has not given any finding on the issues like that each member had authority to interfere with or control the work executed by the other member, that both the members have jointly executed the project and thus produced the income jointly. Thus the finding on the lines stated above is crucial to determine the issue of availability of income in the hands of Joint Venture - AOP. AO is on record that the each of the members has declared the income derived from their respective share of contract works in their hands. In this kind of situation no merit in the presumption made by the AO that the Joint Venture is the "Main Contractor" and the members are the "Sub-contractors". Once this presumption has been found to be wrong, then the question of estimation of income by way of Sub-contract commission does not arise. So also the question of deduction of tax u/s 194C(2) and the disallowance u/s 40(a)(ia) does not arise - in favour of assessee.
|