The Tribunal held that the CIT(A) was right in holding that the provisions of section 194C are not applicable to the transactions of purchase of goods and accordingly deleted the disallowance made by the AO under section 40(a)(ia) in respect of the payments made for purchase of raw materials, no interference is warranted. (AY.2010-11)
Eshan Minerals (P) Ltd. v. Dy. CIT (2018) 191 TTJ 753 (Pune)(Trib.)
S.40(a)(ia):Amounts not deductible – Deduction at source – Purchase of raw materials- Not liable to deduct tax at source [S.194C ]