1998 (9) TMI 69

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....provisions of section 189 are not applicable in assessing the amount of Rs. 7,46,471 in the hands of the partnership firms ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is correct in holding that the provisions of section 176(3A) of the Income-tax Act, 1961, are applicable to the facts of the case ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal, while holding that the provisions of section 176(3A) are applicable, is correct in concluding that the amount of Rs. 7,46,471 cannot be assessed in the hands of the assessee-recipient but in the hands of the three firms which actually executed the contract, on the ground that the assessee received the said amount only as a trustee ?" A....

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....cipients of the amount are the three firms which were constituted for the purpose of executing the contract works and which have executed the works. On appeal, the Commissioner of Income-tax held that the concerned firms have to be assessed separately for the assessment year under consideration and the entire additional contract amount awarded by the arbitrator cannot be treated as the income of the assessee. On further appeal, the Tribunal held that the assessee is only a trustee and he received the amount on behalf of the three firms which have executed the works and since the three firms have discontinued the contract work, section 176(3A) of the Act applies. However, at the instance of the Revenue, question No. 3 as set out in the earli....