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2012 (8) TMI 458 - AT - Income TaxNon deduction of TDS on Charter hire payments to Foreign Shipping Company - Reopening of assessment u/s 147 - Held that:- The assessee has paid hire charges for the services rendered by the foreign shipping companies which is income in the hands of foreign shipping companies for the services rendered in India. The assessee has not placed on record any document to show that foreign shipping companies were exempted by DTAA from payment of tax. As per the provisions of section 195 it was the duty of the assessee to deduct tax at source before making payment to the foreign shipping companies/(non-resident) - against assessee. As the assessee cannot be considered as “assessee representative” under the provisions of section 163 but at the same time is also not complying with the provisions of section 195 against which the department has already initiated proceedings under the provisions of section 201 - The assessee cannot be allowed to take benefit of both the provisions of the Act to get away from the tax liability. Period of Limitation - as notice issued within the time limit but served after expiry of the time limitation cannot be held to be invalid - the Assessing Officer had valid reasons for reopening the assessment, as the income chargeable to tax had escaped assessment - against assessee.
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