As per provisions of section 194C(6), the only requirement for non-deduction of tax at source is that the transport contractors have to furnish their PAN details – The Tribunal restored the issue to the file of the A.O. for de novo adjudication

7. M.S. Hipack v. ACIT (Mumbai) C.N. Prasad (J.M.) and Rajesh Kumar
(A.M.) ITA No.: 1032/Mum/2019 A.Y.: 2011-12 Date of order: 29^th
September, 2020 Counsel for Assessee / Revenue: D.J.
Shukla / R. Bhoopathi

As per provisions
of section 194C(6), the only requirement for non-deduction of tax at source is
that the transport contractors have to furnish their PAN details – The Tribunal
restored the issue to the file of the A.O. for de novo adjudication

FACTS

The A.O. while completing the assessment noticed
that the assessee had incurred transportation charges and had not deducted tax
at source. The assessee having not complied with the requirement of filing
Form–26Q, accordingly, disallowance was made by the A.O.

Aggrieved,
the assessee preferred an appeal to the CIT(A) who sustained the disallowance
as he was not convinced with the submissions made by the assessee.

Aggrieved,
the assessee preferred an appeal to the Tribunal where it was contended that
the assessee has complied with the provisions of section 194C(6) as it has
filed revised and corrected Form-26Q giving the details of PAN of transport
contractors and not deducted TDS complying with the provisions of section 194C(6).
It was submitted that as per the provisions of section 194C(6) the only
requirement for non-deduction of tax at source is that the transport
contractors have to furnish their PAN details. The assessee has duly obtained
PAN details of the contractors and incorporated the same in corrected Form-26Q.

HELD

In view of
the submissions of the assessee that it had corrected Form-26Q by furnishing
the PAN details of the transport contractors and complied with the provisions
of section 196C(6), the Tribunal held that this matter has to be examined by
the A.O. in the light of the submissions of the assessee and in the interest of
justice, it restored the issue to the file of the A.O. for de novo
adjudication with a direction that the A.O. shall take note of the fact of the
assessee filing the corrected Form-26Q and also that the assessee is at liberty
to file all necessary information before the A.O.