TDS U/s. 194C is not applicable to transactions of purchase of goods

Eshan Minerals Pvt. Ltd Eshan Minerals Pvt. Ltd Vs DCIT (ITAT Pune)

The assessee submitted that the payments for raw material charges do not involve the deduction of TDS. Therefore, the applicability u/s.40(a)(ia) does not arise to these payments. These payments do not constitute any interest/commission for attracting the TDS provisions. Accordingly, the provision of section 40(a)(ia) and Section 194C are not applicable in this regard. Considering the said submission of the assessee, the CIT(A) granted relief and same is also been accepted by ITAT.

FULL TEXT OF THE ITAT JUDGMENT

These are the cross appeals filed by assessee and Revenue against the order of CIT(A)-2, Nashik dated 30.03.2014 for A.Y. 2010-11. We shall take up the assessee’s appeal first.

ITA No. 834/PUN/2014 (By assessee)

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