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2010 (3) TMI 119 - AAR - Income TaxExecution of project of DMRC – Capacity – AOP or independent companies - Consortium of Mitsubishi Corporation, Japan, Hyundai Rotem Company, Korea, Mitsubishi Electric Corporation, Japan, BEML Limited, India - DMRC accepted the price proposal submitted by MRMB Consortium in relation to the Contract RS3 and awarded the same to the MRMB Consortium vide its Letter of Acceptance dated 30th August, 2007 - The Consortium members entered into a Supplementary Consortium Agreement (‘SCA’) on 6th June, 2008. The role and the participation percentage of each member is separately defined in the SCA. - On the facts and in the circumstances of the case, whether the consortium of Mitsubishi Corporation, Japan (MC), Hyundai Rotem Company, Korea (Rotem), Mitsubishi Electric Corporation, Japan (MELCO) and BEML Limited, India (‘BEML’) [referred to as ‘MRMB Consortium’], for the purpose of bidding and executing the contract RS3 of Delhi Metro Rail Corporation (‘DMRC’), could be assessed as independent companies under section 2(31)(iii) of the Income-tax Act, 1961 (‘the Act’) in India or as an Association of Persons (‘AOP’) under section 2(31)(v) of the Act. Held that: MRMB Consortium cannot be treated as Association of Persons for the purposes of assessment under the Income-tax Act, 1961 and the applicants can only be subjected to taxation on the basis that they are separate taxable entities
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