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2012 (10) TMI 662 - AT - Income TaxAssessment - representative assessee - Double assessment – business of transportation of coal by time chartering of vessels - assessee had availed the services of vessels owned by Foreign Shipping Companies (FSC), as well - assessee had paid hire charges for engaging those vessels - FSCs have not filed any return for the income accruing and arising in India - AO treated the assessee-company as 'representative assessee' under sec. 163 of the Act – Held that:- Tax has been paid under sec. 172, thereby the FSCs have discharged their liabilities towards Indian income-tax - When the FSCs themselves have discharged their liabilities towards tax by complying with the provisions of sec. 172, there is no question of any further liability in their hands - there is no justification in making the assessment again in the hands of the assessee company in the status of 'representative assessee', which tantamounts to double assessment, which is not permissible under the law - payment of tax made by the FSCs. under sec. 172 tantamounts to discharging of tax liability of those companies and there is no reason why those companies again be assessed - When the principal itself does not make any liability, the agent cannot be fastened with any liability - appeal filed by the assessee is allowed
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