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2014 (2) TMI 510 - AT - Income TaxLiability to deduct TDS u/s 194C of the Act - Disallowance under section 40(a)(ia) of the Act - Can a distinction between joint ventures formed for the purpose of obtaining a contract and other Joint Ventures be made – Liability for tax and interest u/s 201(1) and 201(1A) of the Act - Held that:- If the Joint Venture has not executed the work and the entire work has been executed by the constituents on a back to back basis and the contract amount received by the Joint Venture was entirely transferred to the constituents of the Joint Venture without retaining any amount towards profit, then there may not be any liability on the assessee to deduct tax at source. Where Joint Venture is formed only for the purpose of obtaining contracts and specific portions of the contract are to be completed by individual constituents independently, then it cannot be a case of the Joint Venture giving works contract to the constituents - the profit of the project in such a case should be assessed in the hands of the individual constituents and not in the hands of the consortium AOP - The entire work was executed by the constituents and the Joint Venture has paid the entire contract receipts received by it from the contractee to the constituents without retaining any portion of the profit by whatever name it may be called - the matter remitted back to the AO for fresh adjudication – Decided in favour of Revenue.
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