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TMI Blog2015 (7) TMI 916X X X X Extracts X X X X X X X X Extracts X X X X ..... e same was handed over to the members to enable them to execute the contract. The association has neither kept any commission of its own nor any profit. The association comprising of these two members/ partners joined together for the purposes of executing the project. It is in such circumstances, that no interference of any sub-contractorship can be drawn. It is not correct to say that the Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate Tribunal (the Tribunal) for the Assessment Year 2008-09. 2. The Revenue has proposed the following questions of law for our consideration:- Whether, on the facts and in the circumstances of the case, and in law, the Tribunal is correct in holding that no contract has existed between assessee AOP and its members and there was no liability on the part of the assessee to deduct tax at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 4. In appeal, the CIT(A) held that the members of AOP who received the amount from the AOP were not its subcontractor. Consequently, no occasion to deduct tax under Section 40 (a)(ia) of the Act, would arise. In the meantime, Tribunal reversed the decision of CIT(A) in the matter of SMC Ambika (supra) and held in favour of the assessee therein. Thus, the CIT(A) placed reliance on the above d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Tribunal found that the assesssee is an Association of Persons (AOP). The association comprises of M/s. SMC Infrastructure Pvt. Ltd. which is a company incorporated under the Indian Companies Act, 1956 and M/s. Ambika Enterprises which is a proprietary firm. The association was for the purposes of bidding for contract of the Thane Municipal Corporation. It is the association which placed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal noted the admitted facts and found that there is no sub-contract or relationship of a sub-contractor emerging from this undisputed factual position. It is in these circumstances, that it held that section 194C(2) of the Income Tax Act has no application to the facts of the assessee's case. 7. The aforesaid facts are identical to this case and the above decision of this Court woul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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