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TMI Blog2023 (5) TMI 880X X X X Extracts X X X X X X X X Extracts X X X X ..... he constituent in his return of income, the income of the year is to be assessed in the hands in which the income is received. The income is received in the hands of JV, therefore, interest is to be assessed in the hands of JV. After taxing the same in the hands of the JVs, the profit, if any, is to be apportioned in the line with JV agreement. In these circumstances, addition as made by the AO being the interest received from Corporation Bank has been rightly made and does not call for any interference. AO shall examine whether the said amount has been disclosed by the constituent members of JV in their returns. If it is found that the amount has been disclosed by the constituent JVs in their returns, the same is to be deleted from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5/-. The assessee had transferred the entire contract receipts to its constituent Shri Chitra Ranjan Swain, as he was the sub-contractor who had done the physical execution of the contract. It was the submission that Shri P.K.Mohanty was the technical advisor in respect of the execution of the contract on behalf of JV. It was the submission that the Assessing Officer took the stand that the books of account of the assessee had not given true and fair picture and estimated the income of the assessee. It was the submission that the TDS had also been done by South Eastern Railway, Kolkata on the JV and JV had also deducted TDS in respect of the payments made to Shri Chita Ranjan Swain. It was the submission that Shri Chita Ranjan Swain had dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified in transferring the entire gross bill amount to so called sub-contractor by violating its own agreement. Admittedly, this is not a ground valid enough for the rejection of books of account. How the assessee does its business is for the assessee to decide. The rejection of books of account is permissible when the profit or the total income is not properly discernible from the books as maintained by the assessee. (ii) The source payment of Rs.59,00,906/- has not been justified with proper accounts and evidence and the same has not been clarified in the accounts of joint venture as produced. A perusal of the profit and loss account of the assessee, which is shown at page 52 of PB shows that the net bill raised by the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit being transferred to the constituent Shri Chita Ranjan Swain. When the TDS has been claimed by the assessee in its return to say that the benefit of TDS is given to constituent does not hold water. In any case, this is also admittedly not a substantial ground for the purpose of rejection of books of account of the assessee. 7. This being so, as all the four grounds on the basis of which the Assessing Officer has rejected the books of account and adopted the estimation of income is found to be unsubstantiated and unsustainable, the rejection of books of account by the Assessing Officer itself stands reversed and the estimation of income as done by the Assessing Officer stands deleted. 8. In regard to the issue of TDS certified ..... X X X X Extracts X X X X X X X X Extracts X X X X
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