Case Law Details
Brief of the Case
Delhi High Court in the case of CIT vs. M/s Oriental Structural Engineers Pvt. Ltd. held that the Joint Venture was not an Association of Persons and could not be taxed on that basis, where the JV was formed only to secure the contract, in terms of which the scope of each JV partner’s task was distinctly outlined.
.Facts of the Case
The assessee is a joint venture (JV) which was formed to undertake projects awarded by NHAI. The assessee reported NIL income for the relevant years and claimed refunds. The case was processed under Section 143(1) and later on selected for scrutiny under compulsory scrutiny norms. Therefore, statutory notices were issued to the assessee and served. From the Profit and Loss Account, it was noticed that the assessee received gross receipt of Rs. 92,31,33,229/-. Against this receipt, the assessee debited an amount of Rs. 90,46,70,560/- towards payment to subcontractors, i.e. the JV partners itself. Apart from this, the JV paid work contract tax of Rs. 1,84,62,669/- apart from other small expenses like bank charges, professional fees etc. Similarly, the assessee in another connected case is a joint venture (JV) and the facts are almost similar as mentioned above.
Contention of the Assessee
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Thanks for uploading the judgement. It helps me to make an advice to my clients.
Regards,
Utpal K Saha
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