The Tax Publishers2021 TaxPub(DT) 0111 (Bang-Trib)

INCOME TAX ACT, 1961

Section 194C(6)

Year under consideration was assessment year 2013-14 and, therefore, unamended provision of clause (6) of section 194C were applicable. As per clause 6, as it stood prior to amendment, applicable for the year under consideration in order to get immunity from obligations of TDS, filing of PAN of payee transporter was sufficient, and no confirmation letter as required by AO was needed because the need to furnish declaration from contractor's being owners of less than 10 vehicles has been inserted by way of amendment effective from 1-6-2015. Accordingly, no TDS was called for.

Tax deduction at source - Under section 194C - Payment of transportation charges - PAN of payees obtained but no confirmation letter

Assessee carrying business of Agarbatti and other trading goods claimed deduction of transaction charges paid by him. AO disallowed deduction for want of TDS under section 194C. Assessee contended that PAN of payees were submitted during assessment proceedings and, therefore, assessee complied with provisions of section 194C(6) and 194C(7) and, therefore, no disallowance could be made. Held: Year under consideration was assessment year 2013-14 and, therefore, unamended provision of clause (6) of section 194C were applicable. As per clause 6, as it stood prior to amendment, applicable for the year under consideration in order to get immunity from obligations of TDS, filing of PAN of payee transporter was sufficient, and no confirmation letter as required by AO was needed because the need to furnish declaration from contractor's being owners of less than 10 vehicles has been inserted by way of amendment effective from 1-6-2015. Accordingly, no TDS was called for.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14



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