SHREEJIT PROPACK PVT.LTD.,HARIDWAR vs. THE INCOME TAX OFFICER (TDS), HARIDWAR

ITA 6265/DDN/2016Status: DisposedITAT Dehradun27 May 2026AY 2014-1513 pages
AI SummaryAllowed

What were the facts?

The assessee, M/s Shreeji Propack Pvt Ltd, filed three appeals (ITA Nos. 6263 to 6265/Del/2016) for Assessment Years 2012-13 to 2014-15 against the common order of the Commissioner of Income Tax (Appeals), Muzaffarnagar, dated 27.06.2016. The appeals challenged proceedings under Section 201(1)/201(1A) of the Income Tax Act, 1961. The core issue was the assessee's liability as a deductor for not having deducted TDS on transportation charges paid to various operators. The assessee had admittedly filed the PAN details of these operators under Section 194C(6) of the Act, which was rejected by the lower authorities. The dispute centers on whether this compliance was sufficient to discharge the assessee's onus.

What did the Tribunal hold?

The Tribunal held that if the assessee complies with the provisions of Section 194C(6) of the Income Tax Act, 1961, by furnishing the PAN of the payee-transporter, then disallowance under Section 40(a)(ia) of the Act is not permissible, even if there is a violation of the provisions of Section 194C(7). The Tribunal reasoned that Sections 194C(6) and 194C(7) are independent of each other and cannot be read together to attract disallowance. It was further clarified that under Section 194C(6), as it stood prior to the 2015 amendment, filing of the PAN of the payee-transporter alone is sufficient for immunity from TDS, and no confirmation letter is required. The Tribunal found that the assessee had complied with Section 194C(6) by furnishing the PAN details. Therefore, the lower authorities were not justified in treating the assessee as being in default. The appeals were allowed in these terms.

What were the issues?

1. Whether the assessee is liable as an assessee in default under Section 201(1) of the Income Tax Act, 1961, for failure to deduct TDS on transportation charges paid to various operators, when the assessee had furnished the PAN details of the payee-transporters under Section 194C(6)? Assessee's contention: The assessee argued that by furnishing the PAN of the payee-transporters, it had complied with the provisions of Section 194C(6) of the Act. This compliance rendered the payments immune from TDS, and therefore, no TDS was deductible. Consequently, the disallowance of expenses under Section 40(a)(ia) was uncalled for. Revenue's contention: The Revenue relied on the orders of the lower authorities, implicitly arguing that the assessee's compliance with Section 194C(6) was insufficient to absolve it of the TDS obligation or the subsequent disallowance.

Which sections of the Income-tax Act were involved?

Section 194C,Section 194C(6),Section 194C(7),Section 40(a)(ia),Section 201(1),Section 201(1A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘DB’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI MANISH AGARWAL

Hearing: 25.05.2026Pronounced: 27.05.2026

PER STABEER SINGH GODARA, JM:

These assessee’s three appeals ITA No. 6263, 6264 & 6265/Del/2016; for A.Ys. 2012-13 to 2014-15 arise against the Commissioner of Income Tax (Appeals), Muzaffrnagar’s common order dated 27.06.2016 passed in case Nos. 440 to 442/CIT(A)/DDN/ 14-15, involving proceedings u/s 201(1)/201(1A) of the Income Tax Act, 1961; hereinafter referred

to as, ‘the Act’, respectively.

ITA Nos. 6263 to 6265/Del/2016

Heard both the parties at length. Case files perused.

2.

We notice during the course of haring at the outset that the assessee/appellant raises its identical sole substantive grievance

directed against both the learned lower auth

The order continues below.

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