Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 205 - AT - Income TaxTDS u/s 194C - non-deduction of TDS on certain payments made towards clearing and forwarding charges (CFS charges), plot rent and Dock charges - AR submited that no TDS is liable to be deducted in case of an amount paid on account of reimbursement of expenses - HELD THAT:- Assessee has submitted that the issue may be restored to the file of the Assessing Officer so that the assessee may produce the relevant evidences in this respect. The matter in this respect, is accordingly restored to the file of the AO for limited purpose of examining the above contention of assessee and if the assessee will be able to prove its above contention, then no disallowance be made in respect of such payments which have been taken into account by the respective payees and due taxes paid on their income. Assessee has further submitted that some of the payments were made to Kolkata Port Trust and that since the Kolkata Port Trust is under the Ministry of Surface Transport wherein the Government of India has full beneficial interest, therefore, any payment made to Kolkata Port Trust will be covered u/s 196 of the Act and, therefore, the income of the Kolkata Port Trust was not chargeable to tax. That, therefore, the assessee cannot be deemed to be an assessee in default for non-deduction of TDS out of payments made to Kolkata Port Trust because there was no tax payable on the income of the said payee Kolkata Port Trust. The ld. counsel, in this respect, has relied upon the decision of the Coordinate Bench of the Tribunal in the case of M/s Gourishankar Bihani [2014 (12) TMI 1323 - ITAT KOLKATA]. The matter in respect of above contention is also restored to the file of the AO. The Ld. AO shall adjudicate upon the above contention by way of a speaking order. Payment made towards shipping company charges - CIT(A) has not given any detailed or factual finding as to which of the payees were foreign shipping companies or their agents. CIT(A) has simply relied upon the list given by the assessee without discussing as to which of the payees were resident companies and which of the payees were non-resident companies and no basis has been given for his such conclusion. In view of this, we agree with the contention of the ld. DR that this issue is also required to be examined at the end of the Assessing Officer to give a factual finding as to which of the payee companies will be covered under the provisions of section 172 and to re-compute the disallowance on the payments made to shipping companies covered under the provisions of section 194C and 195. In view of this, the impugned order of the CIT(A) is set aside and the matter is restored to the file of the Assessing Officer on the limited issue as noted above. Appeal of the assessee is treated as partly allowed for statistical purposes
|