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2021 (9) TMI 1023 - AT - Income TaxTDS u/s 194C - Addition u/s 40(a)(ia) - disallowance merely on technical basis that assessee has failed to make compliance with the provision of section 194C(7) - HELD THAT:- As gone through the judicial pronouncements referred by the ld. counsel in the case of the Soma Ghosh [2016 (10) TMI 55 - ITAT KOLKATA] holding that if assessee complies with the provision of section 194(6), no disallowance u/s. 40(a)(ia) is permissible even though there is violation of provision of section 194C(7) of the act. In the case of CIT vs. Marikamba Transport Co. [2015 (6) TMI 181 - KARNATAKA HIGH COURT] held that in case of payment made to sub-contractor non-filing of form no. 15-I/J is only a technical defect and provision u/s. 40(a)(ia) should not attract in such a case. In the light of the above facts and findings, it is observed that in this case assessee has furnished the copies of PAN along with copies of invoices of transportation bill comprising complete address of the transporter, phone no and complete particulars of the goods loaded through the transportation. AO has not taken any step to disprove the genuineness of the transportation expenses by not conducting any inquiry therefore simply for technical lapse u/s. 194C(7) it is not appropriate to disallow the claim of transportation expenses. Looking to the above facts and finding, we consider that the decision of ld. CIT(A) is not justified, therefore, this ground of appeal of the assessee is allowed.
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