Section 40A(2)(b) Disallowance for Assumed Higher Sub-contracting Income is unsustainable

Tapi JWil JV Vs ITO (ITAT Delhi)

ITAT Delhi held that disallowance under section 40A(2)(b) of the Income Tax Act on merely estimating that more income should have been earned from sub-contracting without bringing any comparable figures is unsustainable in law.

Facts- The assessee M/s TAPI Prestressed Products Ltd. (‘TPPL’) and M/s JITF Water Infrastructure Ltd. (‘JWIL’) had entered into an agreement to form a Joint Venture (JV) with the specific pur

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