Disallowance u/s 40(a)(ia) cannot be made merely because Form No.15J was not furnished in time i.e. upto 30th June of subsequent financial year:

AO made disallowance u/s 40(a)(ia) for non-compliance of S.194C on the ground that assessee had not furnished Form No.15J before 30^th June of the subsequent financial year as required under Rule 29D. The Hon’ble High Court held that the requirements for exclusion provided in sub-section (3) of S.194C from liability to deduct tax at source under sub-section (2) would be fulfilled the moment the concerned sub-contractors produce Form No.15-I to the assessee. The requirement of such payer to furnish details to the income-tax authorities in the prescribed form within the prescribed time would arise later and any infraction in such a requirement would not make requirement of deduction of tax at source applicable under sub-section (2) of S.194C. Fulfilment of such a requirement cannot be linked with deduction of tax at source. Hence, no disallowance u/s 40(a)(ia) is justified.

[VALIBHAI KHANBHAI MANKAD - TAX APPEAL NO.1182 of 2011 - GHC]