Section 194-IA of the Income Tax Act

Income-tax Act, 2025: s.393

Section 194-IA of the Income-tax Act, 1961 corresponds to section 393 (Tax to be deducted at source) of the Income-tax Act, 2025.

Read section 393 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 194-IA is State of Kerala v. C. Velukutty (60 ITR 239), cited in 78 of the 76 judgments on BharatTax that turn on this section.

Leading authorities on Section 194-IA

State of Kerala v. C. Velukutty
60 ITR 239 · 1966 · Supreme Court
78
citing judgments

A best judgment assessment must be based on wisdom, truth, and legal principles, not arbitrary caprice. While it involves estimation and guesswork, this must have a reasonable nexus to available material and the case's circumstances.

121 ITR 232 (Punj. & Har.), Kanti Lal Purshottam & Co. v. CIT
155 ITR 519 · 1985 · High Court
13
citing judgments

Payments made for purchasing stock-in-trade or raw materials are considered expenditure for the purpose of Section 40A(3). An assessee's ignorance of a newly inserted prohibition on cash payments can lead to deletion of disallowances.

109 ITR 1 (AIl), PH. Textiles v. CIT
121 ITR 232 · 1980 · High Court
12
citing judgments

Payments made for purchasing stock-in-trade or raw materials are considered expenditure for the purpose of Section 40A(3). This view is supported by decisions from multiple High Courts.

Sajowanlal Jaiswal v. CIT
104 ITR 664 · 1976 · High Court
9
citing judgments
Hukumchand Mills Ltd. v. State of Madhya Pradesh
52 ITR 583 · 1964 · Supreme Court
9
citing judgments
Tejinder Singh v. Dy. CIT
19 Taxmann.com 4 · 2012 · Reported
9
citing judgments
121 ITR 229 (Punj. & Har.), Fakri Automobiles v. CIT
165 ITR 253 · 1987 · High Court
7
citing judgments
CIT v. Hardware Exchange
190 ITR 61 · 1991 · High Court
7
citing judgments
103 ITR 706 (Ori.), U.P. Hardware Store v. CIT
109 ITR 1 · 1977 · High Court
6
citing judgments
104 ITR 664 Allahabad; Ratan Udyog v. ITO
121 ITR 237 · 1980 · High Court
6
citing judgments

Judgments on Section 194-IA

Glen Morgan D Costa, Mumbai vs. ITO Int Tax Ward 2(1)(1), Mumbai

The appeal are dismissed

ITA 6573/MUM/2025[2022-23]Status: DisposedITAT Mumbai30 Jan 2026AY 2022-23

Bench: The Learned Cit(A), The Assessee Submitted That He, Along With His Wife, Owned A Property, Each Having 50% Ownership. The Said Property Was Sold During The Relevant Financial Year For A Total Consideration Of Rs. 1 Crore & The Amount Was Credited By The Purchaser In The Joint Bank Account Of The Assessee With His Wife. The Assessee Submitted That The Tds Amounting To Rs.22,88,000/- Was Deducted By The Purchaser Under Section 194-Ia Of The Act On The Pan Of The Assessee. However, Both The Assessee & His Wife Computed Their Respective Capital Gains Tax At A 50% Share Of The Sale

Section 143(1)Section 154Section 194Section 195

Mahendra Manshi Nagda, Mumbai vs. CIT (Appeal), Delhi

In the result, the appeal of the assessee is allowed

ITA 7336/MUM/2025[2018-19]Status: DisposedITAT Mumbai23 Jan 2026AY 2018-19

Bench: Shri Vikram Singh Yadav & Ms. Kavitha Rajagopalassessment Year : 2018-19 Mahendra Manshi Nagda, Income Tax Officer, 202, Kanan Building, Ward-20(1)(1), Seth Motishaw Lane, Vs. Piramal Chamber, Mumbai-400010. Mumbai-400012. Pan : Aahpn5436C (Appellant) (Respondent) For Assessee : Shri Sameer Dalal For Revenue : Shri Annavaran Kosuri Date Of Hearing : 20-01-2026 Date Of Pronouncement : 23-01-2026 O R D E R Per Vikram Singh Yadav, A.M :

For Appellant: Shri Sameer DalalFor Respondent: Shri Annavaran Kosuri
Section 143(3)Section 194Section 56(2)(x)

Assertive Infrastructure Pvt. Ltd., Delhi vs. ITO Ward 3(3), New Delhi

In the result, appeal of the assessee is partly allowed

ITA 4200/DEL/2025[2014-15]Status: DisposedITAT Delhi21 Jan 2026AY 2014-15

Bench: Shri Mahavir Singh & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 194Section 250Section 40

Simmi Gupta, Chandigarh vs. DCIT/ACIT TDS, Chandigarh

In the result, appeal of the assessee is allowed

ITA 212/CHANDI/2025[2017-18]Status: DisposedITAT Chandigarh22 Dec 2025AY 2017-18

Bench: Shri Laliet Kumar & Shri Manoj Kumar Aggarwalआयकर अपील सं./ Ita No. 212/Chd/2025 "नधा"रण वष" / Assessment Year: 2017-18 Simmi Gupta, The Dcit/Acit (Tds), 1076, Sector 37-B, Vs Chandigarh. Chandigarh. "थायी लेखा सं./Pan No: Afwpg4983R अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : Shri Parikshit Aggarwal, Ca Revenue By : Dr. Ranjit Kaur, Addl. Cit, Sr.Dr Date Of Hearing : 10.12.2025 Date Of Pronouncement : 22.12.2025

For Appellant: Shri Parikshit Aggarwal, CAFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr.DR
Section 132Section 133(6)Section 148Section 194Section 201

Rakesh Gupta, Khanna vs. DCIT/ACIT-TDS, Chandigarh

In the result, appeal is allowed

ITA 640/CHANDI/2025[2018-19]Status: DisposedITAT Chandigarh12 Nov 2025AY 2018-19

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwalआयकर अपील सं./ Ita No. 640/Chd/2025 "नधा"रण वष" / Assessment Year: 2018-19 Shri Rakesh Gupta, Vs The Dcit/Acit-Tds, House No. 64, Chandigarh. New Bank Colony, Khanna. "थायी लेखा सं./Pan No: Agnpk8978Q अपीलाथ"/Appellant ""यथ"/Respondent Assessee By : None (Written Submission) Revenue By : Dr. Ranjit Kaur, Addl. Cit, Sr.Dr Date Of Hearing : 06.10.2025 Date Of Pronouncement : 12.11.2025 Physical Hearing

For Appellant: None (Written Submission)For Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr.DR
Section 194Section 201Section 201(1)

Janta Land Promoters Pvt Ltd, Mohali vs. The Prinicipal Commissioner of Income Tax, Chandigarh-1, Chandigarh

In the result, appeal of the Assessee is allowed

ITA 618/CHANDI/2025[2020-2021]Status: DisposedITAT Chandigarh29 Oct 2025AY 2020-2021
For Appellant: Shri Pankaj Bhalla, C.AFor Respondent: Shri Manav Bansal, CIT, DR
Section 143(3)Section 194Section 263Section 68

ACIT Central Circle 2(3), Ahmedabad vs. Sandeep Narsinhbhai Patel, Ahmedabad

In the result, the appeal of the Revenue is dismissed

ITSSA 53/AHD/2025[2020-21]Status: DisposedITAT Ahmedabad09 Sept 2025AY 2020-21

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarit(Ss)A No.53/Ahd/2025 Asstt.Year : 2020-21 The Acit, Cent.Cir.2(3) Sandeep Narsinhbhai Patel Ahmedabad. Vs. 94, Shaligram-2 Anandnagar Road Satellite, Ahmedabad. Pan : Abcpp 1764 F (Applicant) (Responent)

For Appellant: Shri R.P. Rastogi,CIT-DR
Section 132Section 132(4)Section 135DSection 139(1)Section 142(1)Section 143(2)Section 143(3)Section 153C

Prahlad Das Goyal, Bhopal vs. DCIT - 1(1) Bhopal, Bhopal

Appeal is partly allowed

ITA 5/IND/2025[2016-17]Status: DisposedITAT Indore04 Aug 2025AY 2016-17

Bench: Shri B.M. Biyani & Shri Paresh M. Joshiassessment Year:2016-17 Prahlad Das Goyal, Dcit/Acit 1(1) 18, Shyamla Hills, Bhopal बनाम/ Bhopal Vs. (Assessee/Appellant) (Revenue/Respondent) Pan: Abbpg3494L Assessee By Shri S.S. Deshpande, Ar Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 31.07.2025 Date Of Pronouncement 04.08.2025

Section 143(2)Section 143(3)Section 194Section 40

Naresh Kumar Jain, Delhi vs. DCIT, Circle Intl. Tax-2(1)(2), Delhi

In the result, the appeal of the assessee in ITA No

ITA 281/DEL/2025[2024-25]Status: DisposedITAT Delhi30 Jul 2025AY 2024-25

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri Deepak Jain, CAFor Respondent: Shri Vikram Singh Sharma, Sr DR
Section 143(1)Section 194Section 199Section 250Section 64

Stylam Industries Limited, Chandigarh vs. DCIT, TDS, Chandigarh

In the result, appeal of the assessee is allowed for statistical purposes

ITA 1152/CHANDI/2024[2015-16]Status: DisposedITAT Chandigarh28 Jul 2025AY 2015-16

Bench: Shri Rajpal Yadav & Shri Manoj Kumar Aggarwal

For Appellant: Shri Ravinder Krishan, AdvocateFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr.DR
Section 194Section 201Section 201(1)Section 234E

Wwics Estates Private Limited, Mohali vs. The DCIT/ACIT, TDS, Chandigarh

The appeal stands partly allowed

ITA 654/CHANDI/2022[2015-16]Status: DisposedITAT Chandigarh23 Jul 2025AY 2015-16

Bench: Hon’Ble Shri Rajpal Yadav & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./ Ita No.654/Chandi/2022 (िनधा"रण वष" / Assessment Year: 2015-16) M/S Wwics Estates Private Limited Dcit / Acit Tds बनाम/ Vs. A-12, Industrial Area, Phase-6 Sector 17 Mohali. Chandigarh "थायीलेखासं./जीआइआरसं./Pan/Tan No. Aaacw-3524-A / Ptlw-10174-D (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant By : Shri Tejmohan Singh (Advocate) – Ld. Ar ""थ"कीओरसे/Respondent By : Dr. Ranjit Kaur (Addl. Cit) – Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 15-07-2025 घोषणाकीतारीख /Date Of Pronouncement : 23-07-2025 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2015- 16 Arises Out Of The Order Of Learned Commissioner Of Income Tax (Appeals) National Faceless Appeal Centre (Nfac), Delhi [Cit(A)] Dated 03-10-2022 In The Matter Of An Order Passed By Ld. Ao U/S 201(1) & (Ia) On 23-03-2022 Raising Certain Demand Against The Assessee. Having Heard Rival Submissions & Upon Perusal Of Case Records, The Appeal Is Disposed-Off As Under.

For Appellant: Shri Tejmohan Singh (Advocate) – Ld. ARFor Respondent: Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR
Section 133ASection 194Section 194CSection 194JSection 201(1)Section 44A

Seema Srivastava, Patna vs. ITO, Dc/Ac-6, Patna

In the result, the appeal is dismissed

ITA 715/PAT/2024[2017-18]Status: DisposedITAT Patna06 Jun 2025AY 2017-18

Bench: Shri George Mathan & Shri Rakesh Mishra

Section 115BSection 142(1)Section 143(2)Section 143(3)Section 144Section 250Section 250(2)Section 48Section 54Section 54F

Dy. Commissioner of Income Tax, Central Circle-1, Aurangabad. vs. Tapadiya Construction Ltd, Aurangabad

In the result, appeal of the Revenue is dismissed

ITA 1375/PUN/2024[2019-20]Status: DisposedITAT Pune03 Jun 2025AY 2019-20

Bench: Dr. Manish Borad & Shri Vinay Bhamore

For Appellant: Shri Vipul Joshi, AdvocateFor Respondent: Shri Ganesh B. Budruk, Addl.CIT
Section 132Section 269SSection 271D

Baderunnisa, Bengaluru vs. Income Tax Officer, Ward-3(2)(1), Bangalore

In the result appeal of the assessee is allowed

ITA 2572/BANG/2024[2023-24]Status: DisposedITAT Bangalore05 May 2025AY 2023-24

Bench: Shri Waseem Ahmedassessment Year: 2023-24

For Appellant: Shri Mohammad Taher Shaikh, CAFor Respondent: Shri Ganesh R Gale, Standing Counsel for Dept
Section 143(1)Section 194ISection 199

Ramasami Palanisamy, Tirupur vs. ITO, Ward-2(1), Erode

ITA 2314/CHNY/2024[2016-17]Status: DisposedITAT Chennai25 Mar 2025AY 2016-17

Bench: Shri Aby T. Varkey & Shri Amitabh Shukla

For Appellant: Shri T. Banusekar, AdvocateFor Respondent: Shri Nilay Baran Som, CIT
Section 142(1)Section 147

Dilipkumar Phoolchand Jain, Mumbai vs. ACIT-20(1), Mumbai

ITA 2334/MUM/2024[2014-15]Status: DisposedITAT Mumbai12 Dec 2024AY 2014-15

Bench: Shri Amarjit Singh & Shri Sunil Kumar Singhassessment Year: 2014-15 Dilipkumar Phoolchand Jain Acit-20(1), Mumbai

For Appellant: Shri Dipesh RupareliaFor Respondent: Shri R.R. Makwana, Sr. DR
Section 143(3)Section 194Section 234ASection 234BSection 234CSection 271(1)(c)Section 271FSection 274

M/S. Binny Limited, Chennai vs. DCIT, TDS, Circle-1(1), Chennai

ITA 25/CHNY/2024[2016-17]Status: DisposedITAT Chennai11 Dec 2024AY 2016-17

Bench: Shri Aby T Varkey & Shri Amitabh Shuklaआयकर अपील सं./ Ita No.24 & 25 /Chny/2024 निर्धारण वर्ष /Assessment Years: 2015-16 & 2016-17 M/S.Binny Limited No.1, Cooks Road, Otteri, Perambur, Chennai-600 012. [Pan: Aaacb2529G] (अपीलार्थी/Appellant) अपीलार्थी की ओर से/ Assessee By Shri B.Ramakrishnan,F.C.A सुनवाई की तारीख/Date Of Hearing 06.11.2024 घोषणा की तारीख / Date Of Pronouncement : 11.12.2024 The Deputy Commissioner Of Income Tax, Tds Circle-1(1), Chennai. (प्रत्यर्थी/Respondent) Ms.R.Anita, Addl.Cit आदेश / Order Per Amitabh Shukla, A.M : These Appeals Are Filed Against The Order Bearing Din & Order No.Itba / Apl / M / 250/2023-24 / 1057748856(1) & No.Itba / Apl / M / 250 / 2023-24 / 1057750319(1) Dated 07.11.2023 For The Assessment Years 2015-16 & 2016-17 Through The Aforesaid Appeal The Assesse Has Challenged Order U/S 250 Dated 07.11.2023 Passed By Cit(A), Chennai. 2.0 The Afore Mentioned Two Appeals Are Contesting The Order U/S 201 / 201A Passed By The Ld. Ao In The Case Of The Assessee For The

Section 194Section 201Section 250

M/S. Binny Limited, Chennai vs. DCIT, TDS, Circle -1(1), Chennai

ITA 24/CHNY/2024[2015-16]Status: DisposedITAT Chennai11 Dec 2024AY 2015-16

Bench: Shri Aby T Varkey & Shri Amitabh Shuklaआयकर अपील सं./ Ita No.24 & 25 /Chny/2024 निर्धारण वर्ष /Assessment Years: 2015-16 & 2016-17 M/S.Binny Limited No.1, Cooks Road, Otteri, Perambur, Chennai-600 012. [Pan: Aaacb2529G] (अपीलार्थी/Appellant) अपीलार्थी की ओर से/ Assessee By Shri B.Ramakrishnan,F.C.A (प्रत्यर्थी/Respondent) The Deputy Commissioner Of Income Tax, Tds Circle-1(1), Chennai. Ms.R.Anita, Addl.Cit सुनवाई की तारीख/Date Of Hearing घोषणा की तारीख / Date Of Pronouncement : 06.11.2024 11.12.2024 आदेश / Order Per Amitabh Shukla, A.M : These Appeals Are Filed Against The Order Bearing Din & Order No.Itba / Apl / M / 250/2023-24 / 1057748856(1) & No.Itba / Apl / M / 250 / 2023-24 / 1057750319(1) Dated 07.11.2023 For The Assessment Years 2015-16 & 2016-17 Through The Aforesaid Appeal The Assesse Has Challenged Order U/S 250 Dated 07.11.2023 Passed By Cit(A), Chennai. 2.0 The Afore Mentioned Two Appeals Are Contesting The Order U/S 201 / 201A Passed By The Ld. Ao In The Case Of The Assessee For The

Section 194Section 201Section 250

Shankheshwar Buildwell Limited, Ahmedabad vs. The Income Tax Officer, Ward -3, TDS, Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 970/AHD/2024[2015-16]Status: DisposedITAT Ahmedabad09 Oct 2024AY 2015-16

Bench: Dr. Brr Kumarasstt.Year : 2015-16 Shankheswar Buildwell Ltd. Ito, Ward-3 (Tds) Adani Corporate House Vs Ahmedabad. Shantigram Nr.Vaishno Devi Circle Sg Highway, Khodiyar Ahmedabad382 421. Gujarat. Pan : Aacs 5788 F (Applicant) (Responent) : Assessee By Shri Biren Shah, Ar Revenue By : Shri Ravindra, Sr.Dr सुनवाई क" तारीख/Date Of Hearing : 09/10/2024 घोषणा क" तारीख /Date Of Pronouncement: 09/10/2024 आदेश आदेश/O R D E R आदेश आदेश

For Respondent: Shri Ravindra, SR.DR
Section 194Section 201Section 201(1)Section 250

Indira Voona, Visakhapatnam vs. The Income Tax Officer, TDS Ward 1, Visakhapatnam

In the result, appeal of the assessee is allowed

ITA 268/VIZ/2023[2015-16]Status: DisposedITAT Visakhapatnam25 Sept 2024AY 2015-16

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./I.T.A. No. 244/Viz/2023 (निर्धारण वर्ा/ Assessment Year: 2017-18) Indira Voona V. Income Tax Officer – Ward 3(1) Visakhapatnam Plot No. 24, Sector 12 Mvp Colony, Visakhapatnam – 530017 Andhra Pradesh [Pan: Aewpv1518E] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) आयकर अपील सं./I.T.A. No. 268/Viz/2023 (निर्धारण वर्ा/ Assessment Year: 2015-16) Income Tax Officer – Tds Ward -1 Indira Voona V. Visakhapatnam Plot No. 24, Sector 12 Mvp Colony, Visakhapatnam – 530017 Andhra Pradesh [Pan: Aewpv1518E] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

Section 143(2)Section 143(3)Section 250Section 69A