Provision of S. 194C is not applicable to the payment made for purchase of raw materials for the business hence no disallowance can be made for failure to deduct tax at source . (AY .2010 – 2011)
Eshan Minerals (P) Ltd. v. Dy. CIT (2018) 161 DTR 369 / 191 TTJ 753 (Pune)(Trib.)
S.40(a)(ia):Amounts not deductible – Deduction at source – payment to purchase of raw materials is not liable to deduct tax at source .[ S.194C ]