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)

ACIT 17(2), Mumbai vs. Nathalal Shivlal, Mumbai

In the result, the appeal is dismissed

ITA 2143/MUM/2016[2011-12]Status: DisposedITAT Mumbai26 Feb 2018AY 2011-12

Bench: Shri Mahavir Singh () & Shri N.K. Pradhan () Assessment Year: 2011-12 Acit-17(2) Nathalal Shivlal Ramesh Room No. 134, Bhavan, Gr. Floor, 89, Vs. Aayakar Bhavan, Nakhodda Street, M.K. Road, Tambakata (Phydhonie), Mumbai-400020. Mumbai-400003. Pan No. Aaafn0757F Appellant Respondent Revenue By : Mr. V. Vidhyadhar, Dr Assesseeby : Mr. Akash Kumar, Ar Date Of Hearing : 04/12/2017 Date Of Pronouncement : 26/02/2018

For Appellant: Mr. Akash Kumar, ARFor Respondent: Mr. V. Vidhyadhar, DR
Section 143(3)Section 194CSection 194C(6)Section 194C(7)Section 40Section 44A

Income Tax Offiecer-17(3)(4), Mumbai vs. Sugarchem, Mumbai

In the result, the appeal filed by the Revenue is partly allowed

ITA 2071/MUM/2016[2011-12]Status: DisposedITAT Mumbai21 Feb 2018AY 2011-12

Bench: Shri C.N. Prasad & Shri Manoj Kumar Aggarwalincome Tax Officer-17(3)(4) M/S. Sugarchem 1St Floor, Aayakar Bhavan Kshamalaya, 3Rd Floor Vs. M.K. Road, Mumbai 400020 Marine Lines Mumbai 400020 Pan – Aayfs3762P Appellant Respondent

For Appellant: Shri Purushotttam KumarFor Respondent: Shri Bhpendra Shah
Section 143(3)Section 194C(6)Section 194C(7)Section 40

DCIT, Madurai vs. Ontime Transport Company Limited, Rajapalayam

In the result, the appeal filed by the Revenue is dismissed

ITA 91/CHNY/2017[2010-11]Status: DisposedITAT Chennai25 Jan 2018AY 2010-11

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamonyआयकर अपील सं./Ita No.91/Mds/2017 "नधा"रण वष" / Assessment Year : 2010-11

For Appellant: Sh.D. Prabhu Mukunth Arun KumarFor Respondent: Shri V. Jagadisan, CA
Section 194CSection 194C(6)Section 194C(7)Section 40

Kali Kinkar Roy, Hooghly vs. ITO, W 2(4), Bwn, Burdwan

In the result, the appeal of the assessee is allowed

ITA 1676/KOL/2016[2010-11]Status: DisposedITAT Kolkata31 Jan 2017AY 2010-11

Bench: : Shri M.Balaganesh & Shri S.S.Viswanethra Ravia.Y. 2010-11

For Appellant: Shri Somnath Ghosh, Advocate, ld.ARFor Respondent: Shri Sallong Yaden, Addl.CIT, ld.DR
Section 143(2)Section 194CSection 194C(6)

Sh. Jatinder Singh, Delhi vs. ITO, New Delhi

In the result, the appeal of the assessee is dismissed

ITA 2184/DEL/2016[2012-13]Status: DisposedITAT Delhi13 Jan 2017AY 2012-13

Bench: : Shri I.C. Sudhir & Shri L.P. Sahu

For Appellant: Sh. Ashwani Kumar, AdvocateFor Respondent: Ms. Anupama Anand, CIT/DR
Section 143(3)Section 194C(6)Section 263

DCIT, Madurai vs. Polyspin Exports Limited, Rajapalayam

In the result, the appeal of the Revenue is allowed for statistical purpose

ITA 1890/CHNY/2016[2012-13]Status: DisposedITAT Chennai19 Dec 2016AY 2012-13

Bench: Shri Abraham P. George & Shri G. Pavan Kumar

For Appellant: Shri V Sri Krishnan, CA
Section 143(1)Section 143(2)Section 143(3)Section 194C(6)Section 194C(7)Section 40

M/S Tata Projects Ltd., Noida vs. ACIT (TDS), Noida

In the result, appeals of the assessee are allowed

ITA 4404/DEL/2016[2015-16]Status: DisposedITAT Delhi14 Dec 2016AY 2015-16

Bench: Shri O.P. Kant & Smt Suchitra Kamblei.T.A .No.-4403/Del/2016 (A.Y 2014-15) & I.T.A .No.-4404/Del/2016 (A.Y 2015-16)

Section 133ASection 194CSection 194C(7)Section 201Section 3Section 6

M/S Tata Projects Ltd., Noida vs. ACIT (TDS), Noida

In the result, appeals of the assessee are allowed

ITA 4403/DEL/2016[2014-15]Status: DisposedITAT Delhi14 Dec 2016AY 2014-15

Bench: Shri O.P. Kant & Smt Suchitra Kamblei.T.A .No.-4403/Del/2016 (A.Y 2014-15) & I.T.A .No.-4404/Del/2016 (A.Y 2015-16)

Section 133ASection 194CSection 194C(7)Section 201Section 3Section 6

ACIT, Cir-2, Asansol vs. Sri Atindra Nath Choubey, Burdwan

In the result, appeal filed by the revenue is dismissed

ITA 221/KOL/2014[2010-2011]Status: DisposedITAT Kolkata05 Dec 2016AY 2010-2011

Bench: Dr. A.L.Saini, Am & Shri K. Narasimha Chary, Jm & Co. No.48/Kol/2016 (Arising Out Of Appeal No. Ita 221/K/2014 (Assessment Year :2010-2011) Acit, Circle-2, Asansol Vs. Shri Atindra Nath Chaubey, Prop.A.N.Choubey & Co. G.T.Road East, Muragasol, Po : Asansol, Dist:Burdwan(W.B.)-713303 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Acppc 6542 G .. (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से /Revenue By : Shri Saurabh Kumar, Jcit "नधा"रती क" ओर से /Assessee By : Shri K.K.Khemka & Shri P.C.Nayak, Advocates सुनवाई क" तार"ख / Date Of Hearing : 15/11/2016 घोषणा क" तार"ख/Date Of Pronouncement 05/12/2016 आदेश / O R D E R Per Dr. Arjun Lal Saini, Am: The Captioned Appeal & Cross Objection Filed By The Revenue & Assessee Respectively, Pertaining To The Assessment Year 2010-2011, Are Directed Against The Order Passed By Ld. Commissioner Of Income Tax (Appeals), Asansol In Appeal No.230/Cit(A)/Asl./Cir-2/Asl/12-13, Dated 27.11.2013, Which In Turn Arise Out Of Assessment Order Passed By The Assessing Officer (Ao) Under Section 143(3) Of The Income Tax Act 1961, (In Short The ‘Act’), Dated 16.01.2013. 2. Brief Facts Of The Case Qua The Assessee Are That The Assessee Filed Return Of Income For Assessment Year 2010-11 Electronically On 30.11.2010 Declaring Total Income At Rs.21,22,657/-. The Case Was Processed By The Department U/S.143(3) Of The Act & The Ao Has Completed The Assessment By Making Addition U/S.40(A)(Ia). 3. Aggrieved From The Order Of Ao, The Assessee Filed Appeal Before

For Appellant: Shri K.K.KhemkaFor Respondent: Shri Saurabh Kumar, JCIT
Section 143(3)Section 194CSection 194C(6)Section 194C(7)Section 40

M.Kannapan, Trichy vs. ACIT, Trichy

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

ITA 350/CHNY/2013[2009-10]Status: DisposedITAT Chennai12 Aug 2016AY 2009-10

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. S. Sridhar, AdvocateFor Respondent: Shri. Durai Pandian, JCIT
Section 143(1)Section 143(2)Section 143(3)Section 194C(6)Section 40Section 40A(3)

DCIT, Tiruppur vs. Maglink Infra Projects Pvt Ltd., Tiruppur

In the result, the appeal of the Department is allowed for 8

ITA 97/CHNY/2016[2011-12]Status: DisposedITAT Chennai30 Jun 2016AY 2011-12

Bench: Shri Chandra Poojari & Shri G. Pavan Kumar

For Appellant: Shri. P. Radhakrishnan, IRS, JCITFor Respondent: Shri. S. Sridhar, Advocate
Section 143(2)Section 143(3)Section 194C(6)

Supriya Silk Industries, Mumbai vs. ITO 18(3)(4), Mumbai

Appeal of the assessee is allowed for statistical purposes

ITA 317/MUM/2016[2012-13]Status: DisposedITAT Mumbai10 Mar 2016AY 2012-13

Bench: Shri Joginder Singh, Assessment Year: 2012-13 M/S Supriya Silk Industries, Ito-18(3)-4, 23/25, 2Nd Floor, Mumbai बनाम/ Champa Galli, Vs. Mumbai-400002 "नधा"रती / Assessee राज"व / Revenue P.A. No.Aaafs8864Q

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