The AO disallowed the expenses on the ground that\u00a0 the asseseee has failed to file TDS related documents at the time of filing of return of\u00a0 TDS.\u00a0 Order of the AO is up held by the Tribunal. On appeal High Court held that\u00a0 sub-section (6) of section 194C is the provision which grants benefit to the assessee. This benefit comes with the condition of compliance of sub-section (7) of section 194C, which is the procedure to be followed.\u00a0 Even assuming that the assessee had not furnished the particulars as required under sub-section (7) of section 194C in the prescribed form, the maximum that could be done is to impose a fine of Rs. 200 for every day of such non-compliance. Therefore, this procedural law, as prescribed under sub-section (7) of section 194C cannot takeaway the benefit, which will accrue to the assessee under sub-section (7) of section 194C. For the above reasons, the matter is to be remanded to the AO for\u00a0 a fresh consideration.\u00a0 Followed,\u00a0 CIT v. Sri Parameswari Spinning Mills (P.) Ltd.\u00a0 (2019)\u00a0 108 taxmann.com 386\u00a0 (Mad.)(HC) referred\u00a0 ACIT v. Arihant Trading Co (2019) 176 ITD 397 (Jaipur) (Trib.).\u00a0 (AY. 2012-13 )\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 194C : Deduction at source-Contractors-Failure to file TDS related documents at the time of filing of return of TDS- Procedural law-Fine can be imposed- Expenses cannot be disallowed-Matter remanded to the AO for readjudication. [S. 40(a)(ia), 194C(6), 194C(7), 254(2), 260A] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10826","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2OC","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=10826"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10826\/revisions"}],"predecessor-version":[{"id":18991,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10826\/revisions\/18991"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=10826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=10826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=10826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}