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2017 (1) TMI 1573 - AT - Income TaxDisallowance u/s 40(a)(ia) - payment made towards sea freight expresses - non deduction of tds - applicability of provisions contained in sec 172 and CBDT Circular No.723 dated 19.09.1995 - Held that:- as long as the assessee can demonstrate that the payment is made in respect of freight to non-resident shipping companies, the assessee does not have any tax withholding obligation under section 195 or section 194C. In the present case, it appears that complete details of invoices to the satisfaction of the Assessing Officer have not been furnished before the Assessing Officer or before the CIT(A) also. There is at best partial compliance of this requirement - the matter deserves to be remitted to the file of Assessing Officer with the direction that as long as the assessee can demonstrate that the payment is made to a nonresident directly or through authorized agents and the payment is in respect of the freight, the Assessing Officer shall not make any disallowance under section 40(a)(ia) on account of such payments. Assessee is not under any obligation to give evidence in respect of actual collection of tax from the non-resident shipping company under section 172 - Decided in favour of assessee for statistical purposes.
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