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2019 (5) TMI 98 - AT - Income TaxAddition invoking provisions of Sec.40(a)(ia) - TDS u/s 194C - payments to transporters - non furnishing of details obtained in 194C(6) of transporters in e-TDS return as per 194C(7) - HELD THAT:- Two reasons assigned by the AO for not accepting the plea of the Assessee to invoke the provisions of Sec.40(a)(ia) of the Act in this case was held to be unsustainable. First reason given by the AO was that the provisions of Sec.194C(6) are applicable only to transport contractors and not to any other payee and that reason has been held to be not correct in the aforesaid decision in which it was held Sec. 194C(6) made it plainly clear that from the A.Y. 2010-11 onwards, by virtue thereof when Transport Operators furnish their PAN to the person responsible for making payments to them, the Transport Operators would be outside the purview of TDS u/s 194C and that immunity from TDS u/s. 194C(1) in relation to payments to transporters, applies transporter and non-transporter contractees alike. Second reason that the Assessee failed to comply with the provisions of Sec.194C(7) of the Act and that reason has also been held to be not correct in the aforesaid decision and the view taken is that if the assessee complies with the provisions of section 194C(6), disallowance under section 40(a)(ia) does not arise just because there is violation of provisions of section 194C(7) of the Act. CIT(A) was justified in deleting the addition made by the AO. We find no grounds to interfere with the order of CIT(A) and consequently dismiss this appeal by the Revenue.
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