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TMI Blog2019 (9) TMI 775X X X X Extracts X X X X X X X X Extracts X X X X ..... al. In CIT Vs. Valibhai Khanbhai Mankad reported in [ 2012 (12) TMI 413 - GUJARAT HIGH COURT ] held that once conditions of proviso to Section 194(C)(7) are satisfied, liability of payer to deduct taxes at source would cease and consequently, disallowance of payment of sub-contractor under Section 40(a)(ia) could not be made on the ground that the assessee had not furnished form no.15J as required under Rule 29D. We find that the said decision is of no assistance to the case of the Revenue. Assessee referred to the decision of the ITAT Jaipur in the case of ACIT Vs. Arihant Trading Co. reported in [ 2019 (3) TMI 1251 - ITAT JAIPUR ]. In the said decision it has been held that Section 194C(6) (7) are independent of each other and cannot read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considering the facts and circumstances of the case, the issue requires a fresh look by the ld. Assessing Officer. Ld. Assessing Officer has to verify whether assessee had complied with Sub Section (6) of Section 194C of the Act. He also needs to verify whether the assessee had filed form No.26Q, though belatedly. If assessee has complied with these there can be no disallowance u/s. 40(a)(ia) of the Act. 5. Ms.V.Pushpa, learned Senior Standing Counsel would contend that the Tribunal virtually has indicated that the Assessing Officer cannot make disallowance under Section 40(a)(ia) of the Act. The question is as to whether the assessee has filed the requisite declaration for claiming the benefit under Section 194C(6). 6. We find sub-Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xamine as to whether the fee has to be collected. We find that there is no ground to interfere with the order passed by the Tribunal. 9. Ms.V.Pushpa placed reliance on the decision of the Hon'ble Supreme Court in the case of CIT Vs. Valibhai Khanbhai Mankad reported in [(2014) 51 Taxmann.com 385 (SC)] where the Hon'ble Supreme Court has granted leave to file appeal by the revenue against the order passed by the Gujrat High Court in CIT Vs. Valibhai Khanbhai Mankad reported in [(2012) 28 Taxmann.com 119]. In the said decision the High Court of Gujarat held that once conditions of proviso to Section 194(C)(7) are satisfied, liability of payer to deduct taxes at source would cease and consequently, disallowance of payment of sub-contra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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