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

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

In the result, the appeal filed by the Revenue is allowed for statistical purposes

ITA 1871/CHNY/2018[2014-15]Status: DisposedITAT Chennai05 May 2022AY 2014-15

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./I.T.A. No.1871/Chny/2018 िनधा"रण वष"/Assessment Year: 2014-15 The Income Tax Officer, Vs. M/S. Ever Green Trailor Services, Ward 1, Namakkal. No. 6/336-A6,, Paramathi Road, Opposite To Ntloa Petrol Pump, Namakkal 637 001. [Pan:Aacfe5113G] (अपीलाथ"/Appellant) (""थ"/Respondent) अपीलाथ" की ओर से / Appellant By : Shri V. Vivekanandan, Cit ""थ" की ओर से/Respondent By : Shri G. Baskar, Advocate & Shri I. Dinesh, Advocate सुनवाई की तारीख/ Date Of Hearing : 06.04.2022 घोषणा की तारीख /Date Of Pronouncement : 05.05.2022 आदेश /O R D E R Per V. Durga Rao: This Appeal Filed By The Revenue Is Directed Against The Order Of The Ld. Commissioner Of Income Tax (Appeals), Salem, Dated 20.03.2018 Relevant To The Assessment Year 2014-15. The Revenue Has Raised The Following Grounds: “1) The Order Of The Hon'Ble Commissioner Of Income-Tax (Appeals) Is Opposed To The Facts, Law. 2) The Cit(A) Has Failed To Consider The Assessing Officer'S Observation That All The Bearer Cheques Issued By The Assessee

For Appellant: Shri V. Vivekanandan, CITFor Respondent: Shri G. Baskar, Advocate &
Section 194CSection 194C(6)Section 274C(6)Section 40

Agilent Technologies (International) Pvt. Ltd., Gurgaon vs. ACIT, Gurgaon

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

ITA 6047/DEL/2012[2008-09]Status: DisposedITAT Delhi05 May 2022AY 2008-09

Bench: Shri R.K. Panda & Ms Astha Chandraassessment Year: 2008-09 Agilent Technologies Vs Acit, (International) Pvt. Ltd., Circle-1(1), Plot No.Cp-11, Gurgaon. Sector-8, Manesar, Gurgaon. Pan: Aadca4115C (Appellant) (Respondent) Assessee By : S/Shri Rohit Tiwari & Shrey Chakarborty, Advocates Revenue By : Shri Surender Pal, Cit-Dr Date Of Hearing : 16.03.2022 Date Of Pronouncement : 05.05.2022 Order Per R.K. Panda, Am: This Appeal Filed By The Assessee Is Directed Against The Order Dated 25Th October, 2012 Passed U/S 144C/143(3) Of The It Act, 1961 For The Assessment Year 2008-09. 2. Facts Of The Case, In Brief, Are That The Assessee, Agilent Technologies (International) Private Limited Is A 100% Subsidiary Of Agilent Technologies International Europe, Bv Which In Turn Is A Wholly Subsidiary Of Agilent Technologies, Inc. The Assessee Is Engaged In The Provision Of Software Development (It) Services & Information Technologies Enabled Services (Ites). It Filed Its Return Of Income On 29Th September, 2008 Declaring The Taxable Income Of Rs.90,31,260/-. Since The Assessee Has Entered Into Certain International Transactions With Its Ae, The Ao Referred The Matter To The Tpo U/S 92Ca Of The It Act For Determination Of The Alp Of The International Transaction Entered Into By The Assessee With Its Aes. During The Course Of Tp Assessment Proceedings, The Tpo Noted That The Assessee Has Entered Into The Following International Transactions As Mentioned In The Tp Study Report:-

For Appellant: S/Shri Rohit Tiwari &For Respondent: Shri Surender Pal, CIT-DR
Section 144CSection 92C