https://www.taxtmi.com/caselaws?id=334727 The ITAT allowed the appeal of the assessee, a lorry transport contractor, in a case concerning disallowance u/s. 40(a)(ia) of the Income Tax Act. The ITAT held that since there was no formal contract between the assessee and lorry owners/drivers for lorry hire charges, TDS deduction was not mandatory under Section 194C. Consequently, the disallowance of payments exceeding Rs. 50,000 to each lorry owner/driver under section 40(a)(ia) was deemed unwarranted, and the previously disallowed amount was directed to be allowed by the AO. en-us Fri, 02 Sep 2016 00:00:00 +0530 Sat, 19 Nov 2016 12:04:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=334727 The ITAT allowed the appeal of the assessee, a lorry transport contractor, in a case concerning disallowance u/s. 40(a)(ia) of the Income Tax Act. The ITAT held that since there was no formal contract between the assessee and lorry owners/drivers for lorry hire charges, TDS deduction was not mandatory under Section 194C. Consequently, the disallowance of payments exceeding Rs. 50,000 to each lorry owner/driver under section 40(a)(ia) was deemed unwarranted, and the previously disallowed amount was directed to be allowed by the AO. Case-Laws Income Tax Fri, 02 Sep 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=334727