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2019 (12) TMI 212 - HC - Income TaxAssessment of AOP - Addition adopting net profit ratio @ 11.59% of the gross receipts - distribution of business receipts directly among its constituents members - Whether the business receipt distributed by the assessee amongst its members is ‘application of income’ or ‘diversion of income by overriding title’? - Tribunal has concurred with the findings recorded by the Commissioner (Appeals) and has found that the association of persons was formed only to secure the work and after that there was no involvement of such association of persons in the execution of the work as the entire work was executed by the members of the joint venture as agreed between them. Accordingly, the fees from the execution of the project work were shared between the members as per their understanding - HELD THAT:- Both, the Commissioner (Appeals) as well as the Tribunal, have found that the members of the joint venture have duly shown the income in their returns of income and have paid the tax thereon. The joint venture and the members of the joint venture are being taxed at the maximum marginal rate, and hence, no loss has been caused to the revenue. Moreover, the Tribunal as a matter of fact has found that the requirements of CBDT circular referred to hereinabove are duly satisfied in the case of the assessee and hence, once the amount has been offered to tax by its members, the assessee could not be saddled with the liability to pay tax in respect of the same amount. Having regard to the concurrent findings recorded by the Tribunal after appreciating the material on record as referred to hereinabove, it is not possible to state that the impugned order passed by the Tribunal suffers from any legal infirmity so as to warrant interference. No question of law, much less, a substantial question of law can be said to arise out of the impugned order so as to warrant interference. The appeals, therefore, fail and are, accordingly, summarily dismissed.
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