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2015 (7) TMI 916 - HC - Income TaxLiability to deduct tax at source - whether Tribunal is correct in holding that no contract has existed between assessee AOP and its members and there was no liability on the part of the assessee to deduct tax at source on payment to it members? - Held that:- The work was carried out and the same was handed over to the members to enable them to execute the contract. The association has neither kept any commission of its own nor any profit. The association comprising of these two members/ partners joined together for the purposes of executing the project. It is in such circumstances, that no interference of any sub-contractorship can be drawn. It is not correct to say that the Tribunal insisted on any written contract evidencing such relationship. The Tribunal noted the admitted facts and found that there is no sub-contract or relationship of a sub-contractor emerging from this undisputed factual position. It is in these circumstances, that it held that section 194C(2) of the Income Tax Act has no application to the facts of the assessee's case. See SMC Ambika case [2015 (7) TMI 931 - BOMBAY HIGH COURT]- Decided in favour of assessee.
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