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2015 (3) TMI 102 - HC - Income TaxDiversion of JV receipts - proportion of the project receipts, commensurate with the risks/performance obligations attributed to the assessee JV to whom tender had been awarded for the project - whether it is allowable for the assessee to divert the entire receipts to its JV partners by designing a sub-contract to that effect? - Held that:- The consistent and concurring opinions of CIT (A) and ITAT were that the JV was formed only to secure the contract, in terms of which the scope of each JV partner’s task was distinctly outlined. Further, the entire work was split between the two JV partners; they completed the task, through sub-contracts and were responsible for the satisfaction of the NHAI. Therefore, applying the principles of the law declared in Linde AG, Linde Engineering division and Anr [2014 (4) TMI 975 - DELHI HIGH COURT], it is held that the ITAT did not fall into error of law, in holding that the JV was not an association of persons and liable to be taxed on that basis. Decided in favour of the assessee.
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