Assessee was a joint venture constituted through a joint venture agreement, holding a separate permanent account number and having status of AOP. Assessing Officer finalised assessment under section 143(3) treating assessee as an AOP and making addition by adopting net profit ratio at 11.59 per cent of gross receipt.\u00a0 Commissioner (Appeals) deleted addition made by Assessing Officer.\u00a0 Tribunal\u00a0 affirmed the order of CIT (A) and held\u00a0 that AOP was formed only to secure work and after that there was no involvement of such AOP in execution of work as entire work was executed by members of joint venture as agreed between them. Tribunal also held members of joint venture had duly shown income in their returns of income and paid tax thereon.\u00a0 Joint venture and members of joint venture were being taxed at maximum marginal rate, and hence, no loss had been caused to revenue. Tribunal also held\u00a0 that requirements of CBDT circular No. 7\/2016 were duly satisfied in case of assessee and hence, once amount had been offered to tax by its members, hence AOP could not be saddled with liability to pay tax in respect of same amount. High Court affirmed the order of the Tribunal. (AY. 2008-09, 2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 143(3) : Assessment-Joint venture-Association of persons-Once amount had been offered to tax by its members-AOP could not be saddled with liability to pay tax in respect of same amount-Estimation of net profit at 11.59% was deleted-Order of Tribunal is affirmed. [S. 4, 2(31)(v)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-20040","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-5de","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=20040"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20040\/revisions"}],"predecessor-version":[{"id":20041,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20040\/revisions\/20041"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=20040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=20040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=20040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}