Tribunal held that the provisions of section 194C(6) and 194C(7) are independent of each other. As per the provisions of section 194C (6), the assessee had collected PAN of the transporters. Therefore, just because there is violation of provisions of section 194C(7) disallowance of u/s 40(a)(ia) does not arise if the assessee complies with the provisions of section 194C(6) of the Act. (AY. 2011-12)
Sukumar Solvent (P.) Ltd. v. ACIT v ACIT (2023) 200 ITD 614 (Kol (Trib.)
S. 40(a)(ia): Amounts not deductible-Deduction at source-Payment of freight charges to transporters after obtaining PAN of transporters-No disallowance is called for.[S.194C(6), 194C(7)]