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2020 (1) TMI 148 - ITAT CUTTACKTDS u/s 194C - non-deduction of TDS while making deposit to transporter providers on declaration of PAN Number which came into effect from 1.10.2009 - Addition u/s 40(a)(ia) - HELD THAT:- Amendment has been inserted by Finance Act, 2015 to sub-section(6) of Section 194C of the Act, which has been held as effective w.e.f. 1.6.2015, which disentitle the assessee from benefit of first limb of sub-section (6) of section 194C of the Act as the legislature in its wisdom added words “where such contractor owns ten or less goods carriage at any time during the previous year and furnishes a declaration to that effect along with”. The purpose of insertion of said provisions of sub-section(6) to section 194C was that the legislature in its wisdom wanted to give relaxation of this provision only in a case where the contractor owns ten or less goods carriage at any time during the previous year and furnishes a declaration to that effect alongwith his Permanent Account Number, to the person paying or crediting such sum” on which TDS u/s.194C was required to be made. The present case under consideration is pertaining to payment of amount to contractor by the assessee relates to assessment year 2011-12 and I am unable to agree with the contention of ld D.R. that the amended sub-section(6) of Section 194C can be placed into service against the assessee for assessment year 2012-12 as it is ample clear from the Finance Act, 2015 that said amended provisions has been given effect from 1.6.2015 which falls within the ambit of financial year 2015-16. Therefore, hold that the basis taken by the AO and conclusion drawn by the CIT(A)in his order cannot be held as sustainable and justified and thus, dismiss the same - AO is directed to delete the addition - Sole ground of the assessee is allowed.
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