Section 194C(6) of the Income Tax Act

Income-tax Act, 2025: s.393

Section 194C(6) falls under section 194C of the Income-tax Act, 1961, which 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 194C(6) is Loyal Motor Service Co. Ltd. v. CIT (14 ITR 647), cited in 48 of the 112 judgments on BharatTax that turn on this section.

Leading authorities on Section 194C(6)

Loyal Motor Service Co. Ltd. v. CIT
14 ITR 647 · 1946 · High Court
48
citing judgments

A payment of bonus or commission is allowable as a business deduction under Section 36(1)(ii) unless it constitutes a distribution of profits or dividends, thereby distinguishing payments genuinely for services from those merely intended to escape taxation.

AMD Metplast (P.) Ltd. v. Dy. CIT
20 Taxmann.com 647 · 2012 · High Court
10
citing judgments

Commission paid to a Managing Director for services rendered is eligible for deduction under section 36(1)(ii) of the Income-tax Act, 1961, provided it is paid as per the terms of employment and not merely to avoid Dividend Distribution Tax (DDT).

Dalal Broacha Stock Broking Pvt. Ltd. v. Addl.CIT
10 ITR (Trib) 357 · 2011 · ITAT
5
citing judgments
Coil Company (P.) Ltd. v. Asst. CIT
8 Taxmann.com 225 · 2010 · ITAT
3
citing judgments

Judgments on Section 194C(6)

M/S. B. M. Chapalkar & Sons, Nashik vs. Assistant Commissioner of Income Tax

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

ITA 2906/PUN/2016[2010-11]Status: DisposedITAT Pune12 Dec 2019AY 2010-11

Bench: Shri R.S.Syal, Vp & Shri Partha Sarathi Chaudhury, Jm आयकर अपीऱ सं. / Ita No.2906/Pun/2016 नििाारण वषा / Assessment Year : 2010-11 M/S. B.M. Chapalkar & Sons, 26, Dehbanoo Complex, Nashik Pune Road, Nashik Road, Nashik-422 101, Pan: Aadfb5084C .......अऩीऱाथी / Appellant बिाम / V/S.

For Appellant: Shri Pramod ShingteFor Respondent: Shri Ajay Dhoke
Section 139Section 194ASection 201Section 3(1)Section 40

Oruganti Sowbhagyam, Ganjam vs. DCIT, Berhampur

In the result, appeal of the assessee is allowed

ITA 291/CTK/2019[2011-12]Status: DisposedITAT Cuttack04 Dec 2019AY 2011-12

Bench: Shri Chandra Mohan Gargassessment Year : 2011-12

For Appellant: Shri Bhagaban Padhee, ARFor Respondent: Shri J.K.Lenka, DR
Section 194CSection 194C(6)Section 263Section 40

Akbar Qureshi, Delhi vs. ITO, Faridabad

In the result, the appeal of the assessee is partly allowed

ITA 816/DEL/2016[2011-12]Status: DisposedITAT Delhi03 Dec 2019AY 2011-12

Bench: Shri Bhavnesh Saini & Dr. B.R.R. Kumarasstt. Year: 2011-12 Akbar Qureshi Vs Ito Dinesh Mohan Sinha, Advocate Ward 1(1) 108/109, Parmesh Business Centre Faridabad. Plot No. 20, Community Centre, Karkardooma, Delhi. (Appellant) (Respondent) Pan No. Aacpq0549C Assessee By : Sh. D.M. Sinha, Adv. Revenue By : Ms. Ashima Neb, Sr. Dr Date Of Hearing: 03.12.2019 Date Of Pronouncement: 03.12.2019

For Appellant: Sh. D.M. Sinha, AdvFor Respondent: Ms. Ashima Neb, Sr. DR
Section 143(2)Section 194CSection 194C(6)Section 201(1)Section 292BSection 40Section 40(1)(a)

South India Freight Carriers, Bangalore vs. The Income Tax Officer Ward-3(2)(4), Bangalore

In the result, the appeal of the assessee is allowed

ITA 2586/BANG/2018[2015-16]Status: DisposedITAT Bangalore27 Nov 2019AY 2015-16

Bench: Shri B.R Baskaran & Shri Pavan Kumar Gadaleassessment Years : 2015-16

For Appellant: Shri Sudheendra B.R, AdvocateFor Respondent: Shri Sunil Kumar Agarwal, Addl. CIT
Section 194CSection 194C(6)Section 40Section 44A

ITO, Ward-1, Namakkal vs. Ever Green Trailor Services, Namakkal

In the result, the appeals of the Assessee in ITA Nos

ITA 3349/CHNY/2018[2013-14]Status: DisposedITAT Chennai05 Sept 2019AY 2013-14

Bench: Shri George Mathan & Shri S.Jayaraman

For Appellant: Mr.G.Baskar,AdvocateFor Respondent: Mr.S.Bharath,C.I.T D.R
Section 143(3)Section 263Section 40A(3)

ITO, Ward-1, Namakkal vs. Ever Green Trailor Services, Namakkal

In the result, the appeals of the Assessee in ITA Nos

ITA 3348/CHNY/2018[2012-13]Status: DisposedITAT Chennai05 Sept 2019AY 2012-13

Bench: Shri George Mathan & Shri S.Jayaraman

For Appellant: Mr.G.Baskar,AdvocateFor Respondent: Mr.S.Bharath,C.I.T D.R
Section 143(3)Section 263Section 40A(3)

Ever Green Tralor Service, Namakkal vs. ITO, Namakkal

In the result, the appeals of the Assessee in ITA Nos

ITA 1326/CHNY/2017[2013-14]Status: DisposedITAT Chennai05 Sept 2019AY 2013-14

Bench: Shri George Mathan & Shri S.Jayaraman

For Appellant: Mr.G.Baskar,AdvocateFor Respondent: Mr.S.Bharath,C.I.T D.R
Section 143(3)Section 263Section 40A(3)

Ever Green Tralor Service, Namakkal vs. ITO, Namakkal

In the result, the appeals of the Assessee in ITA Nos

ITA 1325/CHNY/2017[2012-13]Status: DisposedITAT Chennai05 Sept 2019AY 2012-13

Bench: Shri George Mathan & Shri S.Jayaraman

For Appellant: Mr.G.Baskar,AdvocateFor Respondent: Mr.S.Bharath,C.I.T D.R
Section 143(3)Section 263Section 40A(3)

M/S. Saan Global, Noida vs. ITO (TDS), Noida

In the result, the appeals of the assessee are allowed for statistical purpose

ITA 4492/DEL/2016[2015-16 (F.Y. 2014-15)]Status: DisposedITAT Delhi20 Aug 2019

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 4487/Del/2016 : Asstt. Year : 2010-11 Ita No. 4488/Del/2016 : Asstt. Year : 2011-12 Ita No. 4489/Del/2016 : Asstt. Year : 2012-13 Ita No. 4490/Del/2016 : Asstt. Year : 2013-14 Ita No. 4491/Del/2016 : Asstt. Year : 2014-15 Ita No. 4492/Del/2016 : Asstt. Year : 2015-16 M/S Saan Global, Vs Income Tax Officer(Tds), C-56/18, Institutional Area, Noida Sector-62, G.B. Nagar, Noida-201301 (Appellant) (Respondent) Pan No. Aahfs7473A Assessee By : Sh. S. Krishnan, Adv. Revenue By : Sh. S. S. Rana, Cit Dr Date Of Hearing: 19.08.2019 Date Of Pronouncement: 20.08.2019 Order Per Bench: The Appeals Are Time Barred By A Period Of 11 Days. It Was Submitted That The Order Of The Ld. Cit(A) Dated 31.05.2016 Has Been Received On 13.06.2016 & Appeals Have Been Filed On 23.08.2016. The Assessee Has Filed Rectification Application U/S 154 Before The Ito For Correction Of The Amount Of Tax Demanded. It Was Submitted That The Assessee Was Under Bonafide Belief That The Appeal To Tribunal Does Not Lie At The Stage & Hence The Delay. We Find That The Delay Is Due To Bonafide Reasons & The Assessee Has Not Derived Or Sought To Ita Nos. 4487 To 4492/Del/2016 2 Saan Global

For Appellant: Sh. S. Krishnan, AdvFor Respondent: Sh. S. S. Rana, CIT DR
Section 154Section 194CSection 194C(6)Section 194C(7)Section 201(1)Section 44ASection 6Section 7

M/S. Saan Global, Noida vs. ITO (TDS), Noida

In the result, the appeals of the assessee are allowed for statistical purpose

ITA 4491/DEL/2016[2014-15 (F.Y. 2013-14)]Status: DisposedITAT Delhi20 Aug 2019

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 4487/Del/2016 : Asstt. Year : 2010-11 Ita No. 4488/Del/2016 : Asstt. Year : 2011-12 Ita No. 4489/Del/2016 : Asstt. Year : 2012-13 Ita No. 4490/Del/2016 : Asstt. Year : 2013-14 Ita No. 4491/Del/2016 : Asstt. Year : 2014-15 Ita No. 4492/Del/2016 : Asstt. Year : 2015-16 M/S Saan Global, Vs Income Tax Officer(Tds), C-56/18, Institutional Area, Noida Sector-62, G.B. Nagar, Noida-201301 (Appellant) (Respondent) Pan No. Aahfs7473A Assessee By : Sh. S. Krishnan, Adv. Revenue By : Sh. S. S. Rana, Cit Dr Date Of Hearing: 19.08.2019 Date Of Pronouncement: 20.08.2019 Order Per Bench: The Appeals Are Time Barred By A Period Of 11 Days. It Was Submitted That The Order Of The Ld. Cit(A) Dated 31.05.2016 Has Been Received On 13.06.2016 & Appeals Have Been Filed On 23.08.2016. The Assessee Has Filed Rectification Application U/S 154 Before The Ito For Correction Of The Amount Of Tax Demanded. It Was Submitted That The Assessee Was Under Bonafide Belief That The Appeal To Tribunal Does Not Lie At The Stage & Hence The Delay. We Find That The Delay Is Due To Bonafide Reasons & The Assessee Has Not Derived Or Sought To Ita Nos. 4487 To 4492/Del/2016 2 Saan Global

For Appellant: Sh. S. Krishnan, AdvFor Respondent: Sh. S. S. Rana, CIT DR
Section 154Section 194CSection 194C(6)Section 194C(7)Section 201(1)Section 44ASection 6Section 7

M/S. Saan Global, Noida vs. ITO (TDS), Noida

In the result, the appeals of the assessee are allowed for statistical purpose

ITA 4489/DEL/2016[2012-13 (F.Y. 2011-12)]Status: DisposedITAT Delhi20 Aug 2019

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 4487/Del/2016 : Asstt. Year : 2010-11 Ita No. 4488/Del/2016 : Asstt. Year : 2011-12 Ita No. 4489/Del/2016 : Asstt. Year : 2012-13 Ita No. 4490/Del/2016 : Asstt. Year : 2013-14 Ita No. 4491/Del/2016 : Asstt. Year : 2014-15 Ita No. 4492/Del/2016 : Asstt. Year : 2015-16 M/S Saan Global, Vs Income Tax Officer(Tds), C-56/18, Institutional Area, Noida Sector-62, G.B. Nagar, Noida-201301 (Appellant) (Respondent) Pan No. Aahfs7473A Assessee By : Sh. S. Krishnan, Adv. Revenue By : Sh. S. S. Rana, Cit Dr Date Of Hearing: 19.08.2019 Date Of Pronouncement: 20.08.2019 Order Per Bench: The Appeals Are Time Barred By A Period Of 11 Days. It Was Submitted That The Order Of The Ld. Cit(A) Dated 31.05.2016 Has Been Received On 13.06.2016 & Appeals Have Been Filed On 23.08.2016. The Assessee Has Filed Rectification Application U/S 154 Before The Ito For Correction Of The Amount Of Tax Demanded. It Was Submitted That The Assessee Was Under Bonafide Belief That The Appeal To Tribunal Does Not Lie At The Stage & Hence The Delay. We Find That The Delay Is Due To Bonafide Reasons & The Assessee Has Not Derived Or Sought To Ita Nos. 4487 To 4492/Del/2016 2 Saan Global

For Appellant: Sh. S. Krishnan, AdvFor Respondent: Sh. S. S. Rana, CIT DR
Section 154Section 194CSection 194C(6)Section 194C(7)Section 201(1)Section 44ASection 6Section 7

M/S. Saan Global, Noida vs. ITO (TDS), Noida

In the result, the appeals of the assessee are allowed for statistical purpose

ITA 4488/DEL/2016[2011-12 (F.Y. 2010-11)]Status: DisposedITAT Delhi20 Aug 2019

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 4487/Del/2016 : Asstt. Year : 2010-11 Ita No. 4488/Del/2016 : Asstt. Year : 2011-12 Ita No. 4489/Del/2016 : Asstt. Year : 2012-13 Ita No. 4490/Del/2016 : Asstt. Year : 2013-14 Ita No. 4491/Del/2016 : Asstt. Year : 2014-15 Ita No. 4492/Del/2016 : Asstt. Year : 2015-16 M/S Saan Global, Vs Income Tax Officer(Tds), C-56/18, Institutional Area, Noida Sector-62, G.B. Nagar, Noida-201301 (Appellant) (Respondent) Pan No. Aahfs7473A Assessee By : Sh. S. Krishnan, Adv. Revenue By : Sh. S. S. Rana, Cit Dr Date Of Hearing: 19.08.2019 Date Of Pronouncement: 20.08.2019 Order Per Bench: The Appeals Are Time Barred By A Period Of 11 Days. It Was Submitted That The Order Of The Ld. Cit(A) Dated 31.05.2016 Has Been Received On 13.06.2016 & Appeals Have Been Filed On 23.08.2016. The Assessee Has Filed Rectification Application U/S 154 Before The Ito For Correction Of The Amount Of Tax Demanded. It Was Submitted That The Assessee Was Under Bonafide Belief That The Appeal To Tribunal Does Not Lie At The Stage & Hence The Delay. We Find That The Delay Is Due To Bonafide Reasons & The Assessee Has Not Derived Or Sought To Ita Nos. 4487 To 4492/Del/2016 2 Saan Global

For Appellant: Sh. S. Krishnan, AdvFor Respondent: Sh. S. S. Rana, CIT DR
Section 154Section 194CSection 194C(6)Section 194C(7)Section 201(1)Section 44ASection 6Section 7

M/S. Saan Global, Noida vs. ITO (TDS), Noida

In the result, the appeals of the assessee are allowed for statistical purpose

ITA 4490/DEL/2016[2013-14 (F.Y.- 2012-13)]Status: DisposedITAT Delhi20 Aug 2019

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 4487/Del/2016 : Asstt. Year : 2010-11 Ita No. 4488/Del/2016 : Asstt. Year : 2011-12 Ita No. 4489/Del/2016 : Asstt. Year : 2012-13 Ita No. 4490/Del/2016 : Asstt. Year : 2013-14 Ita No. 4491/Del/2016 : Asstt. Year : 2014-15 Ita No. 4492/Del/2016 : Asstt. Year : 2015-16 M/S Saan Global, Vs Income Tax Officer(Tds), C-56/18, Institutional Area, Noida Sector-62, G.B. Nagar, Noida-201301 (Appellant) (Respondent) Pan No. Aahfs7473A Assessee By : Sh. S. Krishnan, Adv. Revenue By : Sh. S. S. Rana, Cit Dr Date Of Hearing: 19.08.2019 Date Of Pronouncement: 20.08.2019 Order Per Bench: The Appeals Are Time Barred By A Period Of 11 Days. It Was Submitted That The Order Of The Ld. Cit(A) Dated 31.05.2016 Has Been Received On 13.06.2016 & Appeals Have Been Filed On 23.08.2016. The Assessee Has Filed Rectification Application U/S 154 Before The Ito For Correction Of The Amount Of Tax Demanded. It Was Submitted That The Assessee Was Under Bonafide Belief That The Appeal To Tribunal Does Not Lie At The Stage & Hence The Delay. We Find That The Delay Is Due To Bonafide Reasons & The Assessee Has Not Derived Or Sought To Ita Nos. 4487 To 4492/Del/2016 2 Saan Global

For Appellant: Sh. S. Krishnan, AdvFor Respondent: Sh. S. S. Rana, CIT DR
Section 154Section 194CSection 194C(6)Section 194C(7)Section 201(1)Section 44ASection 6Section 7

M/S. Saan Global, Noida vs. ITO (TDS), Noida

In the result, the appeals of the assessee are allowed for statistical purpose

ITA 4487/DEL/2016[2010-11 (F.Y. 2009-10)]Status: DisposedITAT Delhi20 Aug 2019

Bench: Sh. Amit Shukladr. B. R. R. Kumarita No. 4487/Del/2016 : Asstt. Year : 2010-11 Ita No. 4488/Del/2016 : Asstt. Year : 2011-12 Ita No. 4489/Del/2016 : Asstt. Year : 2012-13 Ita No. 4490/Del/2016 : Asstt. Year : 2013-14 Ita No. 4491/Del/2016 : Asstt. Year : 2014-15 Ita No. 4492/Del/2016 : Asstt. Year : 2015-16 M/S Saan Global, Vs Income Tax Officer(Tds), C-56/18, Institutional Area, Noida Sector-62, G.B. Nagar, Noida-201301 (Appellant) (Respondent) Pan No. Aahfs7473A Assessee By : Sh. S. Krishnan, Adv. Revenue By : Sh. S. S. Rana, Cit Dr Date Of Hearing: 19.08.2019 Date Of Pronouncement: 20.08.2019 Order Per Bench: The Appeals Are Time Barred By A Period Of 11 Days. It Was Submitted That The Order Of The Ld. Cit(A) Dated 31.05.2016 Has Been Received On 13.06.2016 & Appeals Have Been Filed On 23.08.2016. The Assessee Has Filed Rectification Application U/S 154 Before The Ito For Correction Of The Amount Of Tax Demanded. It Was Submitted That The Assessee Was Under Bonafide Belief That The Appeal To Tribunal Does Not Lie At The Stage & Hence The Delay. We Find That The Delay Is Due To Bonafide Reasons & The Assessee Has Not Derived Or Sought To Ita Nos. 4487 To 4492/Del/2016 2 Saan Global

For Appellant: Sh. S. Krishnan, AdvFor Respondent: Sh. S. S. Rana, CIT DR
Section 154Section 194CSection 194C(6)Section 194C(7)Section 201(1)Section 44ASection 6Section 7

ITO, Ward-2(2), Burdwan vs. M/S. Nur Egg Centre, Burdwan

In the result, appeal of the revenue is dismissed

ITA 1873/KOL/2017[2014-15]Status: DisposedITAT Kolkata10 May 2019AY 2014-15

Bench: Sri J. Sudhakar Reddy & Sri S.S. Viswanethra Ravi] I.T.A. No. 1873/Kol/2017 Assessment Year: 2014-15 Income Tax Officer, Ward -2(2), Burdwan….......................................................…..…......Appellant M/S. Nur Egg Centre……………………………………………......……………………………………Respondent 142, Spandan Complex G.T. Road Burdwan - 713101 [Pan : Aacfn 4999 F]

Section 194CSection 194C(3)Section 194C(6)Section 194C(7)Section 250Section 40

Rakshit Chemicals, Hooghly vs. ITO, Ward - 47(2), Kolkata

Appeal is partly allowed in above terms

ITA 632/KOL/2018[2011-12]Status: DisposedITAT Kolkata08 May 2019AY 2011-12

Bench: Shri S.S, Godaraassessment Year:2011-12

Section 143(3)Section 194Section 194CSection 194C(6)Section 194C(7)Section 40

Deputy Commissioner of Income Tax Circle-2(1), Davangere vs. M/S Muurugarajendra Oil Industry Pvt Ltd, Chitradurga

In the result, appeal filed by the Revenue is dismissed

ITA 2094/BANG/2017[2012-13]Status: DisposedITAT Bangalore26 Apr 2019AY 2012-13

Bench: Shri N.V. Vasudevan & Shri Jason P. Boazassessment Year : 2012-13

For Appellant: Shri Pradeep Kumar, CITFor Respondent: Shri V. Srinivasan, Advocate
Section 194(6)Section 194(7)Section 194CSection 194C(6)Section 194C(7)Section 40

Dy.CIT, Circle-3, Kalyan, Mumbai vs. Pawan Estates, Mumbai

The appeal of the revenue is dismissed

ITA 4248/MUM/2017[2012-13]Status: DisposedITAT Mumbai29 Mar 2019AY 2012-13

Bench: Shri Ravish Sood & Shri N.K.Pradhandeputy Commissioner Of M/S Pawan Estates, Income Tax, Circle-3, Kalyan, 11, Siddhi Vinayak Sankul, 2Nd Floor, Rani Mansion, Vs. 1St Floor, Shivaji Path, Murbad Road, Kalyan (W) Kalyan (W)- 421 301 Dist. Thane – 421 301 Pan – Aajfp4181C (Appellant) (Respondent)

For Appellant: Shri Abi Rama Kartikiyen, D.RFor Respondent: Dr. K. Shivram &
Section 143(1)Section 143(2)Section 143(3)Section 194CSection 194C(6)Section 37(1)Section 69C

Assistant Commissioner of Income Tax, Circle, Bharatpur vs. M/S Arihant Trading Co., Bharatpur

In the result, appeal of the Revenue is dismissed

ITA 1113/JPR/2018[2015-16]Status: DisposedITAT Jaipur19 Mar 2019AY 2015-16
For Appellant: Shri P. C. Parwal (CA)For Respondent: Shri K. C. Gupta (JCIT) fu/kZkfjrh dh vksj ls@
Section 194CSection 194C(6)Section 194C(7)Section 40

M/S Fine Blanking Pvt. Ltd., Hubli vs. JCIT, Hubli

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

ITA 393/BANG/2016[2012-13]Status: DisposedITAT Bangalore15 Feb 2019AY 2012-13

Bench: Shri N.V. Vasudevan & Shri B.R. Baskaranassessment Year : 2012-13

For Appellant: Shri Ravishankar, AdvocateFor Respondent: Dr. P.V. Pradeep Kumar, Addl.CIT(DR)(ITAT), Bengaluru