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2018 (2) TMI 1457 - AT - Income TaxDisallowance u/s 40(a)(ia) - payments to transport contractors without fulfilling the conditions laid down in sections 194(6) and 194(7) - assessee did not furnish in the prescribed format the details of those contractors where no TDS was made to the prescribed authority - Held that:- We find that the assessee made payments to transport contractors amounting to ₹ 80,23,971/- whereas the assessee has provided the details and PAN only in respect of nine transporters to the tune of ₹ 67,24,412/- during the course of assessment proceedings. As per provisions of Section 194C(6) if the transport contractors furnish the details in respect of their PAN to the person paying or crediting to such contractors TDS need not be deducted. In the case in hand we can see from the assessment order that the assessee has provided details of PAN only in respect of nine contractors amounting to ₹ 67,24,412/- and no details have been furnished in respect of balance amount of ₹ 12,99,559/-. Even if we say that the assessee has complied with provisions of Section 194C(6) it is only to the extent of ₹ 67,24,412/-. Therefore, since the assessee has not furnished the details of PAN in respect of other contractors, the assessee has not complied with the provisions of Section 194C(6) at least to the tune of ₹ 12,99,559/-. Therefore, in our view the said amount is liable to be disallowed under Section 40(a)(ia) of the Act as the assessee did not furnish PAN details to the AO and the assessee was under the obligation to deduct TDS on this amount. - Decided partly in favour of revenue
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