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2016 (11) TMI 118 - HC - Income TaxTDS liability arises or not - nature of agreement - Contract v/s joint venture - Held that:- We cannot accept the submission of the learned counsel for the appellant-revenue for two- fold reason; one is that, there is enough material to show that the amount received of the contract was directly shared by the assessee and Sri Bapuji as per their proportionate share and the second is that: it was not a matter where the money/the amount realized of the contract was apportioned as the income of the assessee and thereafter, the portion of it or a major portion was paid by the assessee to Sri Bapuji. When after receipt of the contract amount, the shares are identified and taken by both the parties of the joint venture, it cannot be said as a sub-contract. There is no material brought to our notice by the learned counsel for the appellant-revenue that there was any contract entered into by the assessee to assign the work to Bapuji as sub-contractor. Further, additional aspect is that, when the respective share is received by the assessee, it has been shown as the income by the assessee in the return of income. Same is the situation for the respective share of Sri Bapuji who has shown its income of the amount received by it. Under these circumstances, it is not possible for us to agree with the submission of the learned counsel appearing for the appellant-revenue that the finding of the Tribunal that it was of joint venture between the assessee and Sri Bapuji was contrary to the material or based on conjectures and surmises. - Decided in favour of assessee. Addition u/s 40a(i)(a) - Held that:- In the present case, when the assessee has not claimed any amount towards expenditure pertaining to the contract amount which has been received by the assessee, there would not be any scope for disallowing any amount towards the expenditure. The Tribunal has followed the decision of this Court in case of CIT vs. Balaji Engineering Construction Works (2008 (1) TMI 564 - KARNATAKA HIGH COURT). When the issue is already covered by the decision of this Court, it cannot be said that any substantial questions of law would arise for consideration.
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