Section 194C of the Income Tax Act

Income-tax Act, 2025: s.393

Section 194C 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 194C is Hindustan Coca Cola Beverage Pvt. Ltd. v. CIT (293 ITR 226), cited in 576 of the 2,696 judgments on BharatTax that turn on this section.

Leading authorities on Section 194C

Hindustan Coca Cola Beverage Pvt. Ltd. v. CIT
293 ITR 226 · 2007 · Supreme Court
576
citing judgments

The deductor cannot be treated as an assessee-in-default under Section 201(1) if the deductee has already paid the tax or offered the impugned receipts in their return of income. However, interest under Section 201(1A) for delayed deposit of tax can still be levied up to the date of filing of the return of income by the deductee.

Allied Motors (P) Ltd. v. CIT
224 ITR 677 · 1997 · Supreme Court
398
citing judgments

Amendments to the Income-tax Act that are curative, clarificatory, or beneficial in nature apply retrospectively from the date the original statutory provision was introduced, even if not explicitly stated.

Nikunj Eximp Enterprises v. CIT
216 Taxmann 171 · 2013 · High Court
325
citing judgments

Purchases may be treated as genuine even if the purchase parties are untraceable or not available for verification, as long as there is no specific evidence from the parties themselves denying the transactions or proving them to be bogus.

CIT v. Eli Lily & Co.
312 ITR 225 · 2009 · Supreme Court
221
citing judgments

Section 195 of the Income Tax Act, which mandates tax withholding on payments to non-residents, applies only to sums that are otherwise chargeable to tax under the Act. Tax withholding provisions are not charging provisions.

CIT v. Ralson Industries Ltd. 5
288 ITR 322 · 2007 · Supreme Court
153
citing judgments

The Supreme Court affirmed that lower authorities are bound by decisions of higher authorities due to judicial discipline. It also clarified that the Commissioner, in exercising revisional power under Section 263, can conduct necessary inquiries to determine if an assessment is prejudicial to the Revenue.

Goodyear v. State of Haryana
188 ITR 402 · 1991 · Supreme Court
94
citing judgments

A reasonable construction of a taxing statute should be followed, and a literal construction should be avoided if it defeats the manifest purpose and object of the Act.

Maruti Udyog v. DCIT
92 ITD 119 · 2005 · ITAT
87
citing judgments

The onus is on the revenue to establish the nexus between expenses incurred and exempt income before making a disallowance under section 14A.

CIT v. Vector Shipping Services (P) Ltd.
357 ITR 642 · 2013 · High Court
87
citing judgments

Section 40(a)(ia) of the Income-tax Act, 1961, applies only when an amount is payable (accrued) and not when the amount has already been disbursed or paid.

Carborandum Co. v. CIT
108 ITR 335 · 1977 · Supreme Court
87
citing judgments
Sodex SVC India (P) Ltd. v. DCIT (TDS) 2(2)
92 Taxmann.com 260 · 2018 · ITAT
86
citing judgments

A statutory provision is not construed to have retrospective operation unless such a construction is explicitly stated in the Act or arises by necessary and distinct implication.

Judgments on Section 194C

D.C.I.T., Range-3, Lucknow vs. Shri Manoj Gupta, Lucknow

In the result, both appeals of the department and the assessee are partly allowed

ITA 444/LKW/2020[2015-16]Status: DisposedITAT Lucknow19 Mar 2025AY 2015-16

Bench: Shri Kul Bharat & Shri Nikhil Choudharyassessment Year: 2015-16 Manoj Gupta Acit, Range-3 V. B-1/76, Sector K, Aliganj, 27/2, P.K. Complex, Raja Lucknow-226024. Ram Mohan Rai Marg, Lucknow-226001. Pan:Aeopgg7740K (Appellant) (Respondent) Assessment Year: 2015-16 Dcit, Range-3 V. Manoj Gupta 27/2, Raja Ram Mohan Rai B-1/76, Sector K, Aliganj, Marg, P. K. Complex, Lucknow- Lucknow-226024. 226001. Pan: Aeopgg7740K (Appellant) (Respondent) Appellant By: None Respondent By: Shri Sanjeev Krishna Sharma, Addl. Cit(Dr) Date Of Hearing: 18.02.2025 Date Of Pronouncement: 19.03.2025 O R D E R Per Nikhil Choudhary, A.M.: Both These Appeals Arise Out Of The Order Of The Ld. Commissioner Of Income Tax Appeals-1, Lucknow [Hereinafter Referred As To “Ld. Cit(A)”] Passed Under Section 250 Of The Income Tax Act, 1961 [Hereinafter Referred As To “The Act”] Dated 18.09.2020 For The Assessment Year 2015-16. While Ita. No.355/Lkw/2020 Has Been Filed By The Assessee, Ita. No.444/Lkw/2020 Has Been Filed By The Department. As The Issues Involved In Both These Appeals Are Similar & Arise Out Of The Same Orders, The Appeals Are Taken Up For Disposal Together. The Grounds Of Appeal In Ita. No.355/Lkw/2020 Are As Under: -

For Appellant: NoneFor Respondent: Shri Sanjeev Krishna Sharma, Addl
Section 133(6)Section 143(3)Section 145(3)Section 194CSection 250Section 68

Shri Manoj Gupta, Lucknow vs. ACIT, Range-3, Lucknow

In the result, both appeals of the department and the assessee are partly allowed

ITA 355/LKW/2020[2015-16]Status: DisposedITAT Lucknow19 Mar 2025AY 2015-16

Bench: Shri Kul Bharat & Shri Nikhil Choudharyassessment Year: 2015-16 Manoj Gupta Acit, Range-3 V. B-1/76, Sector K, Aliganj, 27/2, P.K. Complex, Raja Lucknow-226024. Ram Mohan Rai Marg, Lucknow-226001. Pan:Aeopgg7740K (Appellant) (Respondent) Assessment Year: 2015-16 Dcit, Range-3 V. Manoj Gupta 27/2, Raja Ram Mohan Rai B-1/76, Sector K, Aliganj, Marg, P. K. Complex, Lucknow- Lucknow-226024. 226001. Pan: Aeopgg7740K (Appellant) (Respondent) Appellant By: None Respondent By: Shri Sanjeev Krishna Sharma, Addl. Cit(Dr) Date Of Hearing: 18.02.2025 Date Of Pronouncement: 19.03.2025 O R D E R Per Nikhil Choudhary, A.M.: Both These Appeals Arise Out Of The Order Of The Ld. Commissioner Of Income Tax Appeals-1, Lucknow [Hereinafter Referred As To “Ld. Cit(A)”] Passed Under Section 250 Of The Income Tax Act, 1961 [Hereinafter Referred As To “The Act”] Dated 18.09.2020 For The Assessment Year 2015-16. While Ita. No.355/Lkw/2020 Has Been Filed By The Assessee, Ita. No.444/Lkw/2020 Has Been Filed By The Department. As The Issues Involved In Both These Appeals Are Similar & Arise Out Of The Same Orders, The Appeals Are Taken Up For Disposal Together. The Grounds Of Appeal In Ita. No.355/Lkw/2020 Are As Under: -

For Appellant: NoneFor Respondent: Shri Sanjeev Krishna Sharma, Addl
Section 133(6)Section 143(3)Section 145(3)Section 194CSection 250Section 68

DCIT, Central Circle-2(1), Chennai vs. M/S Cavincare Pvt Ltd., Chennai

The appeals stand allowed for statistical purposes

ITA 768/CHNY/2023[2012-13]Status: DisposedITAT Chennai24 Feb 2025AY 2012-13

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm 1. आयकरअपील सं. / Ita No.765/Chny/2023 (िनधा)रण वष) / Assessment Year: 2009-10) & 2. आयकरअपील सं. / Ita No.766/Chny/2023 (िनधा)रण वष) / Assessment Year: 2010-11) & 3. आयकरअपील सं. / Ita No.767/Chny/2023 (िनधा)रण वष) / Assessment Year: 2011-12) & 4. आयकरअपील सं. / Ita No.768/Chny/2023 (िनधा)रण वष) / Assessment Year: 2012-13) Dcit M/S Cavinkare Private Limited बनाम/ 12, Cavin Ville, Cenotaph Road Central Circle-2(1) Vs. Teynampet, Chennai-600 018. Chennai "थायीलेखासं./जीआइआरसं./Pan/Tan No. Aaacb-3754-B (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri A. Sasikumar (Cit) - Ld. Dr ""थ"कीओरसे/Respondent By : Shri T. Banusekar (Advocate) – Ld.Ar सुनवाईकीतारीख/Date Of Hearing : 15-01-2025 घोषणाकीतारीख /Date Of Pronouncement : 24-02-2025 आदेश / O R D E R Manoj Kumar Aggarwal ()

For Appellant: Shri A. Sasikumar (CIT) - Ld. DRFor Respondent: Shri T. Banusekar (Advocate) – Ld.AR
Section 133ASection 143(3)Section 35Section 36(1)(ii)Section 40aSection 80Section 80I

DCIT, Central Circle-2(1), Chennai vs. M/S Cavincare Pvt Ltd., Chennai

The appeals stand allowed for statistical purposes

ITA 767/CHNY/2023[2011-12]Status: DisposedITAT Chennai24 Feb 2025AY 2011-12

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm 1. आयकरअपील सं. / Ita No.765/Chny/2023 (िनधा)रण वष) / Assessment Year: 2009-10) & 2. आयकरअपील सं. / Ita No.766/Chny/2023 (िनधा)रण वष) / Assessment Year: 2010-11) & 3. आयकरअपील सं. / Ita No.767/Chny/2023 (िनधा)रण वष) / Assessment Year: 2011-12) & 4. आयकरअपील सं. / Ita No.768/Chny/2023 (िनधा)रण वष) / Assessment Year: 2012-13) Dcit M/S Cavinkare Private Limited बनाम/ 12, Cavin Ville, Cenotaph Road Central Circle-2(1) Vs. Teynampet, Chennai-600 018. Chennai "थायीलेखासं./जीआइआरसं./Pan/Tan No. Aaacb-3754-B (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri A. Sasikumar (Cit) - Ld. Dr ""थ"कीओरसे/Respondent By : Shri T. Banusekar (Advocate) – Ld.Ar सुनवाईकीतारीख/Date Of Hearing : 15-01-2025 घोषणाकीतारीख /Date Of Pronouncement : 24-02-2025 आदेश / O R D E R Manoj Kumar Aggarwal ()

For Appellant: Shri A. Sasikumar (CIT) - Ld. DRFor Respondent: Shri T. Banusekar (Advocate) – Ld.AR
Section 133ASection 143(3)Section 35Section 36(1)(ii)Section 40aSection 80Section 80I