AI Drafter 
TaxTMI 
TaxTMI 
2026 (5) TMI 1458
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....reserves the right to add, alter, modify or change any grounds of appeal. ITA No. 1055/Jodh/2025 • The Ld. CIT(A) has erred in law and facts by confirming penalty imposed u/s. 270A of the Income Tax Act, 1961. The said addition therefore deserves to be quashed. • The assessee reserves the right to add, alter, modify or change any grounds of appeal. 3. Briefly the facts of the case are that the appellant assessee is a joint venture company of M/s Ravi Infra Build Project Pvt. Ltd. and Jai Buildcon Pvt. Ltd. constituted for undertaking construction for the development in construction of infrastructure project. The appellant company had filed his return of income for the year under consideration on 01.10.2018 u/s. 139(1) and revised return of income u/s. 139(5) of the Act on 18.03.2019. The same was processed by CPC u/s. 143(1) and the case has been selected for scrutiny under CASS for proceedings. 4. During the course of scrutiny proceedings, the Assessing Officer (in short "the AO") noticed that the appellant has claimed expenditure in respect of royalty paid to Public Works Department towards consumption of sand, dust and metal used in constructio....
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.... of appeal is partly allowed. The appellant has stated that AO due to misunderstanding and for the want of TDS return has not allowed the sub contract expense in full and has disallowed 10% of such impugned expense. During the appeal proceeding the appellant submitted copy of the JV agreement and copy of the TDS return which are placed below:" "On careful perusal of the details it is noted that it is only an unregistered agreement and the terms of agreement are very general. The appellant has not furnished material evidence for actual execution of work through the Subcontract by M/s Jai buildcon Pvt. Ltd except for copy of agreement and the TDS return. More over as per the terms of the agreement the sub contractor is 100% liable though it is only a sub contractor how such terms of agreement can be entered into especially without the consent of the contractee especially when it is PWD a government Department. Thus the JV agreement seems to be not a genuine one. Therefore, the same is not acceptable. Accordingly, the grounds of appeal 2 and 3 are dismissed." 5. The Ld. AR for the assessee has submitted that the CIT(A) was not justified in confirming the ....
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....o be deleted in full. The Ld. AO grossly erred in law and facts of the case by disallowing sub-contract expense of Rs. 2,65,81,867 by solely misunderstanding that TDS was not deducted and ignoring the fact and made adhoc addition of 10% of the amount paid as subcontract amount. During the year M/s Jai Buildcon Pvt. Ltd (sub-contractor) had raised a bill of Rs 26,58,18,673 in respect of the work executed and the amount was paid to the subcontractor. The Ld. Assessing officer alleged that the appellant has not deducted TDS on the said amount of sub-contract expense in spite of RAVI INFRA- JAI BUILDCON (JV) AY 2018-19 furnishing TDS Return in the Form 26Q. It will not be out of place to mention here that despite the appellant furnished copy of Form 26Q vide their submission dated 17/03/2021, Ld. AO has completely ignored the same and passed the order without taking recognition of the furnished form 26Q. Appellant would also like to invite attention of honors to the 26AS of the sub-contractor to prove its assertion. The appellant has submitted copies of 26AS from Traces and details of all TDS returns filed which is reproduced in the order of Ld. CIT(A) but still made ....
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....it deem appropriate to restore the issues of claim of royalty expenses back to the file of the AO with the direction to examine the issues afresh, after considering the submissions filed by the assessee on record and may be filed during the course of fresh proceedings. 9. As regards to 2nd issue non-deduction of TDS, the Ld. CIT(A) has observed on perusal of the joint venture agreement furnished by the assessee that it was only an unregistered agreement and the terms of agreement are very general, and that the appellant had not furnished material evidence for actual execution of work through the subcontract executed by M/s Jai Buildcon Pvt. Ltd. except the copy of the agreement and the TDS return. The Ld. CIT(A) has further mentioned that as per the terms of the agreement, the sub-contractor is liable to execute 100% of the work and that how such terms of agreement can be entered into especially without the consent of the contractee especially when it is awarded by PWD, a Government Department. The Ld. CIT(A) has thus doubted the genuineness of the joint venture agreement copy furnished by the assessee. The Ld. AR could not furnish any rebuttal on the issues of the genuineness o....
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....s registered office at 95, Hiran Magri, Sector 11, Udaipur - 313002 (Rajasthan) as the first party (Hereinafter referred to as the "First Party") NOTARY Regd. No. 1077 M. AIKA ATHI ASTHAN, ROVT. OF RAJB AND M/s. Jai Buildcon Pvt. Ltd., Represented by Shri Alpesh Jain, {a company incorporated under the Companies Act, 19561 and having ite registered office at - Opposite Telephone exchange Bapu Bazar Rishabhdeo (Rajasthan) as the second party (Hereinafter referred to as the "Second Party") (The expression and words of first and second shall mean and include their heirs slaccessors, assigns, nominees, execution, administrators and legal representatives respectively) FOR RAYÄNFRABUILD PROJECTS PVT. LTD. For Mis Jal Buildcon Pvt. Ltd. Page - 1 - of 3 DIRECTOR Document 2 (Hereinafter in this Agreement, M/s. Ravi Infrabuild Projects Pvt. Ltd. and M/s. Jai Buildcon Pvt. Ltd. unless specifically referred to are individually referred to as "the party" and jointly as the "the parties"). WHEREAS . The Government of Madhya Pradesh, represented by Public Works Department, Nirman Bhawan, 1ª floor Bhopal (hereinafter referred to as the "Employer" which....