https://www.taxtmi.com/caselaws?id=283265 The High Court clarified that Joint Ventures (JVs) formed solely for securing contracts, acting as pass-through entities with minimal expenses, cannot be taxed as Associations of Persons (AOPs) under section 40A(2)(b) of the Income Tax Act. The Court upheld the CIT (A)'s decision to delete the addition made by the Assessing Officer, emphasizing that section 40A(2)(b) relates to expenses, not income. The Tribunal also supported this decision, dismissing the revenue's appeal and reinforcing that JVs in such scenarios do not incur tax liability as AOPs. en-us Tue, 18 Sep 2018 00:00:00 +0530 Tue, 17 Sep 2019 10:21:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=283265 The High Court clarified that Joint Ventures (JVs) formed solely for securing contracts, acting as pass-through entities with minimal expenses, cannot be taxed as Associations of Persons (AOPs) under section 40A(2)(b) of the Income Tax Act. The Court upheld the CIT (A)'s decision to delete the addition made by the Assessing Officer, emphasizing that section 40A(2)(b) relates to expenses, not income. The Tribunal also supported this decision, dismissing the revenue's appeal and reinforcing that JVs in such scenarios do not incur tax liability as AOPs. Case-Laws Income Tax Tue, 18 Sep 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=283265