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2015 (12) TMI 97 - AT - Income TaxDeduction of tax at source on ‘berth hire charges paid to Mumbai Port Trust - TDS u/s 194C or 194I - Held that:- The parity of reasoning laid down by the Hon’ble Supreme Court in the case of Japan Airlines Co. Ltd. (2015 (8) TMI 185 - SUPREME COURT) are required to be applied to the present case also. As per Hon’ble Supreme Court to treat the charges paid to the Airport Authority of India as merely for use of land would a be simplistic approach and that one will have to keep in mind ‘the substance behind such charges’. In this background, the nature of the charges paid was understood not as ‘rent’ for the purposes of section 194-I of the Act. In our view it would be in appropriate to consider the payment of berth charges as rent simplicitor, and rather the same is being paid for a host of other services when the vessels are anchored at the Port area. Therefore, assessee has rightly deducted the tax at source on berth hire charges paid to Mumbai Port Trust in terms of section 194C of the Act as contractual charges - Decided in favour of assessee.
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