Violation of section 194C(7) doesn’t attract disallowance u/s 40(a)(ia) as section 194C(6) duly complied

ACIT Vs Quippo Oil & Gas Infrastructure Ltd. (ITAT Delhi) ITAT Delhi held that disallowance u/s 40(a)(ia) of the Income Tax Act unjustified as there was due compliance with provisions of section 194C(6). Violation of provisions of section 194C(7) doesn’t attract disallowance u/s 40(a)(ia) of Income Tax Act. Facts- The assessee filed return of income for A.Y. 2013-14 declaring loss of Rs. 10,63,43,600/-. The assessment order came to be passed disallowing the depreciation of Rs.3,01,78,780/- on oil drilling rigs, unpaid provisions of leave encashment of Rs. 4,32,147/-, the mobilization of ...