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2016 (12) TMI 1752 - AT - Income TaxTDS u/s 194J - Demand u/s 201(1) - relationship between the assessee and shipping company - Held that:- The nature of relationship between the assessee and shipping company, between the shipping company and seafarers and between the assessee and seafarers have to be determined first, which will in turn would help in determining the nature of liability under the Income tax Act. The nature of relationship could be determined by examining whole gamut of activities along with the agreements and other documents. A perusal of the orders passed by the tax authorities would show that they have not determined the nature of relationship/contract, as stated above. Hence the view of the tax authorities that the provisions of sec. 194J would apply to the facts and circumstances of the case, in our opinion, is not substantiated. We are of the view that this issue requires fresh examination. Accordingly we set aside the order passed by CIT(A) and restore the issue to the file of the AO for examining the same afresh. We also direct the AO to give the benefit of 3rd proviso to sec. 201(1)
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