No 194C Disallowance for Missing Transporter Details; Directors’ Bonus Issue Remanded

DCIT Vs Nutricraft India Pvt. Ltd. (ITAT Bangalore) Conclusion: Failing to report transporter details in your quarterly TDS return was a procedural error, not a tax deduction failure. Since assessee was not liable to deduct tax (thanks to the declarations), Section 40(a)(ia)—which applied only when tax is deductible but not deducted—could not be invoked. Bonus paid to directors, which was disallowed by AO as being “in lieu of dividend” under Section 36(1)(ii), could be allowed as a business deduction was remanded back to examine the shareholding of the directors. Held: Assessee...