Sect. 40(ba) will not be attracted in absence of Profit or remuneration to any JV member

KCL AMRCL Joint Venture Vs. ITO (ITAT Hyderabad)

Coming to the findings of the CIT(A) that in the case of assessee estimate of the profit of the business as well as dis allowance u/s 40(ba) is the only way out, the fact that JV is created only to secure the orders and nowhere on record, we find that the assessee has actually executed the work. JV is formed merely to secure the orders and not to execute the orders. When the assessee has not executed the order, there is no question of making any profit. As the a

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