Section 194C of Income Tax Act, 1961— In the instant case, appeal is filed by against the order passed by ITAT.

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).

It is the submission that the nonfiling of a statement in terms of sub-Section 7 of Section 194C cannot take away the benefit which will accrue to the assessee under sub- Section 6 of Section 194.

Held that—the assessee referred to the decision of the ITAT Jaipur in the case of ACIT Vs. Arihant Trading Co. reported in [176 ITD 397 (Jaipur-Tri)]. In the said decision it has been held that Section 194C(6) & (7) are independent of each other and cannot read together to attract disallowance under Section 40(a)(ia) read with Section 194C of the Act.

In the result we find that there is no substantial question of law arising for consideration, accordingly, the appeal filed by the Revenue fails and the same is dismissed.[COMMISSIONER OF INCOME TAX VERSUS M/S. SRI PARAMESWARI SPINNING MILLS PRIVATE LIMITED] [2019] 15 ITCD Online (63) [MADRAS HIGH COURT]