The assessee made payment of Rs. 5,00,000/-to a transporter for which no tax was deducted as source as it was exempt from TDS. However the AO disallowed the same under section 40(a)(ia) of the Act for non deduction of TDS under section 194C(6). The CIT(A) upheld this disallowance made by the AO. On appeal to the Tribunal, the Tribunal held that the amendment in respect of section 194C(6) has been inserted by Finance Act, 2015 w.e.f. 1.6.2015 wherein TDS was applicable on transporter. There was no reason whatsoever to apply the provisions with a retrospective effect in order to make a disallowance and thereby directed to delete the addition made by AO.  (AY. 2011-12)