9911796707
TMI BlogAssignment of contractual receipt by JV to one partner for project execution is not incurrence of...Assignment of contractual receipt by JV to one partner for project execution is not incurrence of expenditure. JV not required to make total payment of actual contract receipt to partner. AO incorrectly interpreted contract assignment as expenditure for availing partner's services. Contract cost cannot be construed as expenditure, it's project execution cost. AO cannot assume partner could have executed work at less cost in open market. No profit element for JV in contract assignment to partner. CIT(A) order in AY 2011-12 accepted by Revenue, hence a covered issue in assessee's favor. Assessee's minimum expenses for existence allowed, losses allowed to be carried forward. Appeals allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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