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2017 (8) TMI 1595 - AT - Income TaxTDS u/s 194C - Disallowance u/s 40(a)(ia) - assessee AOP had received contracts from third party which, in turn, was executed by the two members of AOP - Whether assignments of the work to the members as per the Memorandum of Understanding agreed upon is not equivalent to sub-contract and as such the assessee AOP was not liable to deduct tax at source out of the amount distributed amongst the members of the AOP in the agreed ratio of share - HELD THAT:- As decided in SHRADDHA & MAHALAXMI JOINT VENTURE (DONGARGAON WORK) [2014 (12) TMI 347 - ITAT PUNE] as relying on SWAPNALI RDS JOINT VENTURE [2014 (12) TMI 320 - ITAT PUNE] held that CIT(A) was justified in holding 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 - The two corporate entities forming joint venture were already being assessed since A.Y. 2000-01 onwards on their respective shares and TDS apportionment certificates were also issued by the AO every year for these eight years including the current assessment year to enable them to claim the same - there was no Profit and Loss Account in the assessee’s case and there was no claim of any expenditure - there was no question of any disallowance under the provisions of section 40(a)(ia) - disallowance u/s. 40(a)(ia) made by the AO cannot be sustained - the finding of the CIT(A) cannot be interfered who has rightly held that there is no question of disallowance made u/s. 40(a)(ia) of the Act – Decided against revenue.
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