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

Eid Parry (India) Ltd., Belagavi vs. Additional Commissioner of Income Tax, TDS Range, Panaji

The appeals of the assessee are allowed in term of aforesaid observation

ITA 40/PAN/2019[2016-17]Status: DisposedITAT Panaji19 Apr 2022AY 2016-17

Bench: Shri Ravish Sood & Shri Jamlappa D. Battullआयकर अपील सं. / Ita No. : 35 To 40/Pan/2019 करधििाारण वर्ा / Assessment Year : 2011-2012 To 2016-2017 M/S Eid Parry India Limited Khanpet, Trogal,Tal. : Ramdurg, Dist. : Belagavi, Karnataka Pan: Aaace 0702 C Tan:Blre 08509 E . . . . . . . अपीलार्थी / Appellant बिाम / V/S Income Tax Officer (Tds) Ward-1, Belagavi, Dist. : Belagavi, Karnataka . . . . . . . प्रत्यर्थी / Respondent द्वारा / Appearances Assessee By : Mr Philip George Revenue By : Shri Sourabh Nayak सुनवाई की तारीख / Date Of Conclusive Hearing : 24/02/2022 घोषणा की तारीख / Date Of Pronouncement : 19/04/2022 आदेश / Order Per Bench; These Present Appeals Filed By The Appellant Assessee Are Directed Against The Orders Of Commissioner Of Income Tax- Appeals, Belagavi [For Short “Cit(A)”] Passed U/S 250 Of The Income-Tax Act, 1961 [For Short “The Act”], Which In Turn Ascended Out Of Orders Of The Addl. Commissioner Of Income Tax-Tds Range, Panaji [For Short “Ao”] Passed U/S 271C Of The Act, For Six Assessment Years [For Short “Ay”] 2011-2012 To 2016-2017. Itat-Panaji Page 1 Of 18

For Appellant: Mr Philip GeorgeFor Respondent: Shri Sourabh Nayak
Section 194CSection 250Section 271C

Eid Parry (India) Ltd., Belagavi vs. Additional Commissioner of Income Tax, TDS Range, Panaji

The appeals of the assessee are allowed in term of aforesaid observation

ITA 39/PAN/2019[2015-16]Status: DisposedITAT Panaji19 Apr 2022AY 2015-16

Bench: Shri Ravish Sood & Shri Jamlappa D. Battullआयकर अपील सं. / Ita No. : 35 To 40/Pan/2019 करधििाारण वर्ा / Assessment Year : 2011-2012 To 2016-2017 M/S Eid Parry India Limited Khanpet, Trogal,Tal. : Ramdurg, Dist. : Belagavi, Karnataka Pan: Aaace 0702 C Tan:Blre 08509 E . . . . . . . अपीलार्थी / Appellant बिाम / V/S Income Tax Officer (Tds) Ward-1, Belagavi, Dist. : Belagavi, Karnataka . . . . . . . प्रत्यर्थी / Respondent द्वारा / Appearances Assessee By : Mr Philip George Revenue By : Shri Sourabh Nayak सुनवाई की तारीख / Date Of Conclusive Hearing : 24/02/2022 घोषणा की तारीख / Date Of Pronouncement : 19/04/2022 आदेश / Order Per Bench; These Present Appeals Filed By The Appellant Assessee Are Directed Against The Orders Of Commissioner Of Income Tax- Appeals, Belagavi [For Short “Cit(A)”] Passed U/S 250 Of The Income-Tax Act, 1961 [For Short “The Act”], Which In Turn Ascended Out Of Orders Of The Addl. Commissioner Of Income Tax-Tds Range, Panaji [For Short “Ao”] Passed U/S 271C Of The Act, For Six Assessment Years [For Short “Ay”] 2011-2012 To 2016-2017. Itat-Panaji Page 1 Of 18

For Appellant: Mr Philip GeorgeFor Respondent: Shri Sourabh Nayak
Section 194CSection 250Section 271C

Eid Parry (India) Ltd., Belagavi vs. Additional Commissioner of Income Tax, TDS Range, Panaji

The appeals of the assessee are allowed in term of aforesaid observation

ITA 38/PAN/2019[2014-15]Status: DisposedITAT Panaji19 Apr 2022AY 2014-15

Bench: Shri Ravish Sood & Shri Jamlappa D. Battullआयकर अपील सं. / Ita No. : 35 To 40/Pan/2019 करधििाारण वर्ा / Assessment Year : 2011-2012 To 2016-2017 M/S Eid Parry India Limited Khanpet, Trogal,Tal. : Ramdurg, Dist. : Belagavi, Karnataka Pan: Aaace 0702 C Tan:Blre 08509 E . . . . . . . अपीलार्थी / Appellant बिाम / V/S Income Tax Officer (Tds) Ward-1, Belagavi, Dist. : Belagavi, Karnataka . . . . . . . प्रत्यर्थी / Respondent द्वारा / Appearances Assessee By : Mr Philip George Revenue By : Shri Sourabh Nayak सुनवाई की तारीख / Date Of Conclusive Hearing : 24/02/2022 घोषणा की तारीख / Date Of Pronouncement : 19/04/2022 आदेश / Order Per Bench; These Present Appeals Filed By The Appellant Assessee Are Directed Against The Orders Of Commissioner Of Income Tax- Appeals, Belagavi [For Short “Cit(A)”] Passed U/S 250 Of The Income-Tax Act, 1961 [For Short “The Act”], Which In Turn Ascended Out Of Orders Of The Addl. Commissioner Of Income Tax-Tds Range, Panaji [For Short “Ao”] Passed U/S 271C Of The Act, For Six Assessment Years [For Short “Ay”] 2011-2012 To 2016-2017. Itat-Panaji Page 1 Of 18

For Appellant: Mr Philip GeorgeFor Respondent: Shri Sourabh Nayak
Section 194CSection 250Section 271C

Eid Parry (India) Ltd., Belagavi vs. Additional Commissioner of Income Tax, TDS Range, Panaji

The appeals of the assessee are allowed in term of aforesaid observation

ITA 37/PAN/2019[2013/14]Status: DisposedITAT Panaji19 Apr 2022

Bench: Shri Ravish Sood & Shri Jamlappa D. Battullआयकर अपील सं. / Ita No. : 35 To 40/Pan/2019 करधििाारण वर्ा / Assessment Year : 2011-2012 To 2016-2017 M/S Eid Parry India Limited Khanpet, Trogal,Tal. : Ramdurg, Dist. : Belagavi, Karnataka Pan: Aaace 0702 C Tan:Blre 08509 E . . . . . . . अपीलार्थी / Appellant बिाम / V/S Income Tax Officer (Tds) Ward-1, Belagavi, Dist. : Belagavi, Karnataka . . . . . . . प्रत्यर्थी / Respondent द्वारा / Appearances Assessee By : Mr Philip George Revenue By : Shri Sourabh Nayak सुनवाई की तारीख / Date Of Conclusive Hearing : 24/02/2022 घोषणा की तारीख / Date Of Pronouncement : 19/04/2022 आदेश / Order Per Bench; These Present Appeals Filed By The Appellant Assessee Are Directed Against The Orders Of Commissioner Of Income Tax- Appeals, Belagavi [For Short “Cit(A)”] Passed U/S 250 Of The Income-Tax Act, 1961 [For Short “The Act”], Which In Turn Ascended Out Of Orders Of The Addl. Commissioner Of Income Tax-Tds Range, Panaji [For Short “Ao”] Passed U/S 271C Of The Act, For Six Assessment Years [For Short “Ay”] 2011-2012 To 2016-2017. Itat-Panaji Page 1 Of 18

For Appellant: Mr Philip GeorgeFor Respondent: Shri Sourabh Nayak
Section 194CSection 250Section 271C

Eid Parry (India) Ltd., Belagavi vs. Additional Commissioner of Income Tax, TDS Range, Panaji

The appeals of the assessee are allowed in term of aforesaid observation

ITA 36/PAN/2019[2012-13]Status: DisposedITAT Panaji19 Apr 2022AY 2012-13

Bench: Shri Ravish Sood & Shri Jamlappa D. Battullआयकर अपील सं. / Ita No. : 35 To 40/Pan/2019 करधििाारण वर्ा / Assessment Year : 2011-2012 To 2016-2017 M/S Eid Parry India Limited Khanpet, Trogal,Tal. : Ramdurg, Dist. : Belagavi, Karnataka Pan: Aaace 0702 C Tan:Blre 08509 E . . . . . . . अपीलार्थी / Appellant बिाम / V/S Income Tax Officer (Tds) Ward-1, Belagavi, Dist. : Belagavi, Karnataka . . . . . . . प्रत्यर्थी / Respondent द्वारा / Appearances Assessee By : Mr Philip George Revenue By : Shri Sourabh Nayak सुनवाई की तारीख / Date Of Conclusive Hearing : 24/02/2022 घोषणा की तारीख / Date Of Pronouncement : 19/04/2022 आदेश / Order Per Bench; These Present Appeals Filed By The Appellant Assessee Are Directed Against The Orders Of Commissioner Of Income Tax- Appeals, Belagavi [For Short “Cit(A)”] Passed U/S 250 Of The Income-Tax Act, 1961 [For Short “The Act”], Which In Turn Ascended Out Of Orders Of The Addl. Commissioner Of Income Tax-Tds Range, Panaji [For Short “Ao”] Passed U/S 271C Of The Act, For Six Assessment Years [For Short “Ay”] 2011-2012 To 2016-2017. Itat-Panaji Page 1 Of 18

For Appellant: Mr Philip GeorgeFor Respondent: Shri Sourabh Nayak
Section 194CSection 250Section 271C

Eid Parry (India) Ltd., Belagavi vs. Additional Commissioner of Income Tax, TDS Range, Panaji

The appeals of the assessee are allowed in term of aforesaid observation

ITA 35/PAN/2019[2011-12]Status: DisposedITAT Panaji19 Apr 2022AY 2011-12

Bench: Shri Ravish Sood & Shri Jamlappa D. Battullआयकर अपील सं. / Ita No. : 35 To 40/Pan/2019 करधििाारण वर्ा / Assessment Year : 2011-2012 To 2016-2017 M/S Eid Parry India Limited Khanpet, Trogal,Tal. : Ramdurg, Dist. : Belagavi, Karnataka Pan: Aaace 0702 C Tan:Blre 08509 E . . . . . . . अपीलार्थी / Appellant बिाम / V/S Income Tax Officer (Tds) Ward-1, Belagavi, Dist. : Belagavi, Karnataka . . . . . . . प्रत्यर्थी / Respondent द्वारा / Appearances Assessee By : Mr Philip George Revenue By : Shri Sourabh Nayak सुनवाई की तारीख / Date Of Conclusive Hearing : 24/02/2022 घोषणा की तारीख / Date Of Pronouncement : 19/04/2022 आदेश / Order Per Bench; These Present Appeals Filed By The Appellant Assessee Are Directed Against The Orders Of Commissioner Of Income Tax- Appeals, Belagavi [For Short “Cit(A)”] Passed U/S 250 Of The Income-Tax Act, 1961 [For Short “The Act”], Which In Turn Ascended Out Of Orders Of The Addl. Commissioner Of Income Tax-Tds Range, Panaji [For Short “Ao”] Passed U/S 271C Of The Act, For Six Assessment Years [For Short “Ay”] 2011-2012 To 2016-2017. Itat-Panaji Page 1 Of 18

For Appellant: Mr Philip GeorgeFor Respondent: Shri Sourabh Nayak
Section 194CSection 250Section 271C

ACIT(TDS)-2(2), Mumbai vs. Sodexo Svc India Pvt. Ltd., Mumbai

In the result, the appeal filed by the revenue is hereby dismissed and the cross-objection of the assessee is hereby dismissed

ITA 1402/MUM/2019[2009-10]Status: DisposedITAT Mumbai06 Apr 2022AY 2009-10

Bench: Shri Amarjit Singh, Jm & Shri S. Rifaur Rahman, Am आयकर अपील सं/ I.T.A. No.1402/Mum/2019 (निर्धारण वर्ा / Assessment Year: 2009-10) बिधम/ Acit (Tds)-2(2) Sodexo Svc India Pvt. Ltd. Room No.717, K. G. Mittal Nesco Complex, Indabrator Vs. Building, W.E. Highway, Ayurvedic Hospital Bldg, Goregaon (E), Mumbai- Charni Road, West , 400051. Mumbai-400002. Co. No.108/Mum/2021 (Arising Out Of Ita. No.1402/Mum/2019) (निर्धारण वर्ा / Assessment Year: 2009-10) Sodexo Svc India Pvt. Ltd. बिधम/ Acit (Tds)-2(2) Nesco Complex, Indabrator Room No.717, K. G. Mittal Vs. Building, W.E. Highway, Ayurvedic Hospital Bldg, Goregaon (E), Mumbai- Charni Road, West , Mumbai- 400051. 400002. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aalcs9822Q (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Jasbir Chouhan Assessee By: Shri Gautam Thakkar & Shri Yazdi P. Jijina सुनवाई की तारीख / Date Of Hearing: 07/02/2022 घोषणा की तारीख /Date Of Pronouncement: 06/04/2022 आदेश / O R D E R Per Amarjit Singh, Jm: The Revenue As Well As Assessee Have Filed The Above Mentioned Appeal As Well As Cross-Objection Against The Order Dated 28.12.2018 Passed

For Appellant: Shri Gautam Thakkar & Shri YazdiFor Respondent: Shri Jasbir Chouhan
Section 133ASection 201(1)