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

Indira Voona, Visakhapatnam vs. Income Tax Officer, Ward-3(1), Visakhapatnam

In the result, appeal of the assessee is allowed

ITA 244/VIZ/2023[2017-18]Status: DisposedITAT Visakhapatnam25 Sept 2024AY 2017-18

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

Income Tax Officer- 24(3)(1), Mumbai vs. Narendra Kumar Jain, Andheri (E), Mumbai

In the result, appeal of the Revenue is dismissed

ITA 3422/MUM/2024[2020-21]Status: DisposedITAT Mumbai22 Aug 2024AY 2020-21

Bench: SHRI AMIT SHUKLA (Judicial Member), SHRI RATNESH NANDAN SAHAY (Accountant Member)

Section 143(3)Section 194Section 269ASection 56(2)(x)

Sekhon Jagtar Singh, Bangalore vs. Income Tax Officer, Ward-5(3)(5), Bangalore

In the result, the appeal of the assessee is allowed

ITA 1104/BANG/2024[2017-18]Status: DisposedITAT Bangalore21 Aug 2024AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Years: 2017-18

For Appellant: Shri Sharankantha, C.AFor Respondent: Ms. Neha Sahay, JCIT (DR)
Section 139Section 147Section 148Section 24Section 270ASection 270A(2)Section 270A(6)Section 274

Shubhankar Nayak, Mumbai vs. ITO 41 (2)(5), Bkc

ITA 4524/MUM/2023[2022-23]Status: DisposedITAT Mumbai03 Jun 2024AY 2022-23

Bench: Shri B.R. Baskaran & Shri Sandeep Singh Karhail

For Appellant: Shri Bhupendra ShahFor Respondent: Shri Dinesh A Chourasia
Section 143(1)Section 154Section 194Section 199(1)Section 250

Parulben Vijaykumar Patel, Ahmedabad vs. The Income Tax Officer, Ward-3(3)(1), Ahmedabad

In the result, the appeal of the assessee is allowed

ITA 164/AHD/2024[2017-18]Status: DisposedITAT Ahmedabad22 May 2024AY 2017-18

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri Sanjay R. Shah, A.RFor Respondent: Shri Ravindra, Sr. DR
Section 139Section 147Section 148Section 270ASection 270A(10)Section 270A(8)Section 270A(9)

Keshavpriya Corp Pvt. Ltd, Ahmedabad vs. The Addl.CIT, TDS, Ahmedabad

In the result, the appeal of the assessee is dismissed

ITA 182/AHD/2022[2015-16]Status: DisposedITAT Ahmedabad20 May 2024AY 2015-16

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: NoneFor Respondent: Shri Ankit Jain, Sr. D.R
Section 143(3)Section 194Section 201Section 201(1)Section 271Section 271C

Keshavpriya Corp Pvt. Ltd, Ahmedabad vs. The ITO, Ward-2 TDS, Ahmedabad

In the result, the appeal of the assessee is dismissed

ITA 181/AHD/2022[2015-16]Status: DisposedITAT Ahmedabad20 May 2024AY 2015-16

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: NoneFor Respondent: Shri Ankit Jain, Sr. D.R
Section 143(3)Section 194Section 201Section 201(1)Section 271Section 271C

Vijay Kumar Goyal, Barwaha vs. Income Tax Officer TDS II Indore, Indore

In the result, appeal of the assessee is allowed

ITA 13/IND/2024[2015-16]Status: HeardITAT Indore08 May 2024AY 2015-16

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanivijay Kumar Goyal Ito, 48, Narmada Barwala Nfac Vs. Mp Delhi (Appellant / Assessee) (Respondent/ Revenue) Pan: Asrpg8655L Assessee By Shri Ram Gilda, Ar Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 07.05.2024 Date Of Pronouncement 08 .05.2024

Section 194Section 194ISection 201(1)

Shri Chaman Kumar Goyal, Badwaha vs. The ITO (TDS)-2, Indore

In the result, the appeal of assessee is allowed

ITA 239/IND/2023[2015-16]Status: DisposedITAT Indore09 Oct 2023AY 2015-16

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanishri Chaman Kumar Goyal Ito (Tds)-2 Goyal Oil Mills Barwaha Indore Vs. Barwaha, M.P. (Appellant / Assessee) (Revenue) Pan: Ahvpg 2117 N Assessee By Shri Ram Gilda, Ar Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 27.09.2023 Date Of Pronouncement 09.10.2023

Section 194Section 194ISection 201(1)

Jaimeet Sawaira, Raipur vs. Income Tax Officer (TDS), Raipur

ITA 175/RPR/2023[2019-20]Status: DisposedITAT Raipur12 Sept 2023AY 2019-20

Bench: Shri Ravish Sood, Jm & Shri Arun Khodpia, Am आयकर अपील सं./Ita No. 175/Rpr/2023 िनधा"रण वष" /Assessment Year: 2019-20

Section 194Section 201Section 201(1)Section 234ESection 250

Soubhagya Rani Vaddireddy, Hyderabad vs. ACIT, Central Circle-1(4), Hyderabad

ITA 178/HYD/2023[2014-15]Status: DisposedITAT Hyderabad31 Aug 2023AY 2014-15

Bench: Shri Rama Kanta Panda & Shri K.Narasimha Chary

For Appellant: Shri K.A. Sai Prasad, ARFor Respondent: Shri K. Madhusudan, CIT-DR
Section 132Section 132ASection 153ASection 194Section 263Section 50C

The ITO (TDS)-2, Rajkot vs. Smt. Sapnaben Vijaybhai Shrimankar, Rajkot

In the result, the appeal of the Revenue is dismissed

ITA 191/RJT/2022[2015-16]Status: DisposedITAT Rajkot23 Aug 2023AY 2015-16

Bench: Shri Waseem Ahmed & Shri Siddhartha Nautiyal

For Appellant: Shri Abhimanyu Singh, Sr. D.RFor Respondent: None
Section 194Section 194I

M/S. Arrone Ceramic, at Vaghasiya, Taluka Wakaner vs. The JCIT TDS Range, Rajkot

In the result, appeal is dismissed

ITA 117/RJT/2021[2016-17]Status: DisposedITAT Rajkot23 Aug 2023AY 2016-17

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

For Appellant: Shri R. K. Doshi, A.RFor Respondent: Shri Abhimanyu Singh, Sr. DR
Section 194Section 194ISection 2Section 201Section 201(1)Section 250Section 271C

Kavita Rathore, Jaipur vs. ITO (TDS), Udaipur

In the result, appeal of the assessee is allowed

ITA 90/JODH/2022[2014-15]Status: DisposedITAT Jodhpur14 Jul 2023AY 2014-15
Section 194Section 194ISection 201Section 201(1)

Neelkanth Developers, Gandhinagar vs. The Asst. Director of Income Tax, CPC, Banglore

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

ITA 350/AHD/2021[2019-20]Status: DisposedITAT Ahmedabad27 Dec 2022AY 2019-20
For Appellant: Shri Hardik Vora, A.RFor Respondent: Shri N.J. Vyas, Sr. D.R
Section 143(1)Section 194Section 234BSection 234C

Neelkanth Developers, Gandhinagar vs. The Asst. Director of Income Tax, CPC, Banglore

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

ITA 349/AHD/2021[2018-19]Status: DisposedITAT Ahmedabad27 Dec 2022AY 2018-19
For Appellant: Shri Hardik Vora, A.RFor Respondent: Shri N.J. Vyas, Sr. D.R
Section 143(1)Section 194Section 234BSection 234C

Shree Jalaram Builders & Developers, Mumbai vs. ITO Ward-32(3)(4), Mumbai

In the result, the appeal file by the assessee is allowed

ITA 2592/MUM/2022[2017-2018]Status: DisposedITAT Mumbai20 Dec 2022AY 2017-2018
Section 143(3)Section 194Section 194ISection 234BSection 40

Sri. Nagarajan Ramachandran, Trivandrum vs. The Pr CIT, Trivandrum

In the result, the appeal stands dismissed

ITA 96/COCH/2021[2016-17]Status: DisposedITAT Cochin09 Nov 2022AY 2016-17

Bench: Hon’Ble Shri Satbeer Singh Godara, J.M & Hon’Ble Shri Manoj Kumar Aggarwal, A.M

For Appellant: NoneFor Respondent: Shri M. Rajasekhar (CIT) – Ld. DR
Section 143(3)Section 194Section 198Section 263Section 56(2)(v)

The Asstt Commissioner of Income Tax, Central Circle-5(4), Mumbai vs. Wadhwa Construction and Infrastructure Ltd, Mumbai

In the result, all the appeals of the assessee as well as learned Assessing Officer are dismissed

ITA 851/MUM/2022[2014-15]Status: DisposedITAT Mumbai21 Sept 2022AY 2014-15

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Jitendra Jain, ARFor Respondent: Shri Ajay Singh, DR
Section 132Section 153ASection 194ISection 2Section 40Section 69C

ACIT Central Cir 5(4), Mumbai vs. M/S. Wadhwa Construction & Infrastructure Pvt. Ltd, Mumbai

In the result, all the appeals of the assessee as well as learned Assessing Officer are dismissed

ITA 631/MUM/2022[2015-16]Status: DisposedITAT Mumbai21 Sept 2022AY 2015-16

Bench: Shri Prashant Maharishi, Am & Shri Sandeep Singh Karhail, Jm

For Appellant: Shri Jitendra Jain, ARFor Respondent: Shri Ajay Singh, DR
Section 132Section 153ASection 194ISection 2Section 40Section 69C