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2014 (4) TMI 1120 - AT - Income TaxTDS u/s 194C - failure to deduct tax at source on the sub-contact given to Srinivasa Construction Ltd. - disallowance u/s 40(a)(ia) - AOP status - Held that:- In absence of any contract or sub-contract work by joint venture to its member companies, provisions of section 194C were not applicable for the purpose of TDS. There was no Profit and Loss Account in the assessee’s case and there was no claim of any expenditure. Therefore, there was no question of any disallowance under the provisions of section 40(a)(ia) of the Act. Moreover, disallowance u/s. 40(a)(ia) made by the Assessing Officer cannot be sustained. In effect, the method adopted by the Assessing Officer will also result in double taxation of the same contract revenue which is in violation of case Commissioner Of Income-Tax Versus Manjunatha Motor Service And Canara Public Conveyances [1991 (6) TMI 23 - KARNATAKA High Court ] - Decided in favour of assessee
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