2016 (9) TMI 702

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....ue pertains to disallowance under Section 40(a)(ia) of the Income Tax Act made by the Assessing Officer on alleged breach of Section 194C of the Act. The Assessee was a transporter and had made expenditure of Rs. 83.02 lacs towards transportation or carriage of goods and had made no deduction of tax at source despite the payments exceeding Rs. 50,000/-. The Assessing Officer disallowed the claim on the ground that the assessee submitted Form J long after the passing of the due date of 30.06.2011. The Tribunal by the impugned judgement accepted the claim relying on the decision of this Court in case of Commissioner of Income Tax-I vs. Valibhai Khanbhai Mankad reported in [2012] 28 Taxmann.com 119 (Guj.). 3. In the said decision in case of....

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....ing or crediting such sum in the prescribed form and verified it in the prescribed manner within the time as may be prescribed, if such sub-contractor is an individual who has not owned more than two goods carriages at any time during the previous year. 7. The exclusion provided in sub-section (3) of section 194C from the liability to deduct tax at source under sub-section (2) would thus be complete the moment the requirements contained therein are satisfied. Such requirements, principally, are that the sub-contractor, recipient of the payment produces a necessary declaration in the prescribed format and further that such subcontractor does not own more than two goods carriages during the entire previous year. The moment, such requ....