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2014 (5) TMI 1190 - AT - Income TaxSpecial provision for computing profits and gains of shipping business in the case of non-residents - section 44B applicability - TDS u/s 195 - Default u/s 201(1) - non deduction of tds on hire/time charter charges paid by the assessee to the non-resident entities being in the nature of royalty (equipment royalty taking ship as an equipment) - provisions of section 44B applicability - HELD THAT:- CIT(A) was not justified in holding that the provisions of section 44B of the Act are applicable to the payments in question made by the assessee. Default u/s 201(1)/201(1A) - as respectfully following the decision of the Special Bench of ITAT in the case of Mahindra & Mahindra [2009 (4) TMI 207 - ITAT BOMBAY-H] we hold that the orders passed by the A.O. u/s 201(1)/201(1A) of the Act in the present case for all the three years under consideration treating SCIL as the assessee in default cannot be sustained as there are no assessments which have been made in the hands of the payees in respect of the amounts paid by the assessee and even the time period for issuing notices u/s 148 for making such assessments have already come to an end. We accordingly uphold the impugned orders of the ld. CIT(A) giving relief to the assessee
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