2020 (11) TMI 204

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....(A) in deleting the disallowance made by the AO u/s. 40(a)(ia) of the Act in the facts and circumstances of the case. 3. The brief facts of the case relating to the issue on hand are that the assessee is an AOP and is a civil contractor which is joint venture by M/s. Shraddha Energy and Infraprojects Pvt. Ltd. in ratio 70-30. During the course of the assessment proceedings, the AO found that the assessee received contract of Rs. 9,83,97,073/- and no income offered. The AO asked the assessee to explain as to why the contract receipt should not be treated as sub contract and why the disallowance should be made for not deducting TDS, but however, due to pendency of appeal on similar issue before the Hon.ble High Court of Bombay, the AO proc....

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....7. Per contra, the Ld. DR contended that the case of the assessee is distinguishable in facts. Though principally, he agreed that the case is squarely covered in favour of the assessee by the decision of Pune Bench of the Tribunal in assessee.s own cases (supra.) as hereinabove referred. 8. We have perused the case records and heard the rival contentions, gave considerable thought to the findings of the Co-ordinate Bench of the Tribunal, Pune in assessee.s own case for assessment year 2012-13. We observe that the Tribunal has held and observed as follows: "10.2 Respectfully following the decision of the Co-ordinate Bench of the Tribunal in the case of ITO vs. Shraddha & Mahalaxmi Joint Venture and Others (supra), we are in....

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.... observed that the strictures of section 40(a)(ia) are diluted in the facts of the case since the payee has admittedly filed its return of income disclosing the impugned receipts and income earned by it embedded in the receipt has been duly offered for taxation. In this view of the matter, the assessee Joint Venture cannot be treated as assessee in default in view of the decision of the Hon.ble Delhi High Court in the case of CIT Vs. Ansal Land Mark Township (P.) Ltd. reported in 377 ITR 635 (Del.) and the decision of the Co-ordinate Bench of the Tribunal in the case of ITO vs. Shri Chandrakant J. Mandale , ITA No.1708/PN/2012 for the assessment year 2008-09 decided on 10.04.2015, the assesee joint venture cannot be treated as assessee "in ....