TMI Blog2018 (11) TMI 1944X X X X Extracts X X X X X X X X Extracts X X X X ..... (JV) and its constituent members do not have a contractor and sub-contractor relationship between them and hence, there is no liability on the JV to deduct tax at source - HELD THAT:- Having regard to the rival contentions and the material on record, we find that the similar issue had arisen in the assessee s own case in the earlier assessment years and this Tribunal has held that there is no con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled to note that the objective of forming the assessee JV is not merely for the purpose of obtaining the contract but also to execute the project work. 3. Whether the Ld. CIT(A) is correct is law in holding that there is no contract-subcontract relationship between the assessee and its constituents so as to attract the provisions of section 194.C on the sub-contract payments or to invoke secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de on the balance of Rs. 29,80,87,479/-, the assessee submitted that the Joint Venture (JV) and its constituent members do not have a contractor and sub-contractor relationship between them and hence, there is no liability on the JV to deduct tax at source under section 194C of the Act. The Assessing Officer, however, was not convinced with the assessee s contention and held that the assessee is l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (20-1-81-CL-V) dated 14.09.1981 wherein it was clarified that the companies can enter into partnership with an individual person or with another company irrespective of nationality and residence. Therefore, according to him, the JV is a partnership firm and as held by the coordinate Bench, the direct payment made to the constituent members is not liable for TDS. 5. Having regard to the rival c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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