Dismissing the appeal of the revenue the Court held that ; whether the transaction is genuine of sham is a question of fact transaction being purchase and sale transaction and dispute was only in respect of sharing of profit the , no disallowance can be made for failure to deduct tax at source on the compensation paid to joint venture . ( AY. 2006 -07)
Entrepreneurs (Calcutta) Pvt. Ltd. v. CIT (2018) 400 ITR 521 (Cal) (HC)
S.40(a)(ia):Amounts not deductible – Deduction at source-Compensation paid to joint venture –Not liable to o deduct tax at source – Disallowance was held to be not justified [ S. 194H, 194J ]