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S. 194C(6) & 194C(7) Operates Independently: ITAT directs to Reconsider Disallowance of Transportation charges u/s 40(a)(ia)

Update / Judgement Date

03 Sept 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Income TaxOther Legal Matters

The ITAT has ruled that "Sections 194C(6) and 194C(7) operate independently," and has directed the "reconsideration of the disallowance of transportation charges under Section 40A(ia)." The tribunal's decision, which is a significant victory for the company, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a tax authority can't add a tax to a company's account without a valid reason.