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2023 (8) TMI 887 - CALCUTTA HIGH COURTPayment of shipping charges - Correctness of the order passed by CIT(A) - Commissioner granted partial relief in favour of the assessee in respect of certain disallowances concerning the non-resident shipping lines - HELD THAT:- On a perusal of the order passed by the CIT(A), we find that there is sufficient discussion as to why the CIT(A) was convinced that relief should be granted to the assessee in respect of the Hanjin Shipping Co. Ltd. and Maersk Line India Pvt. Ltd. Payment of shipping charges was admittedly paid to Hanjin Shipping Co. Ltd., which is an agent of non resident shipping company and the copy of the order u/s 197 by the DDIT (International Taxation) 3(1), Mumbai, certifying that provisions of 195 and 194C of the Act are not applicable in respect of the payments made to Hanjin Shipping Co. Ltd. or their agent Hanjin Shipping India Pvt. Ltd. Thus, the finding in our view, takes note of the relevant order passed by the DDIT (International Taxation). This finding is duly supported by a note mentioned in the invoice raised by Hanjin Shipping Co. Ltd. wherein it has been clearly stated that there is an order under Section 197 of the Act and a request was made not to deduct any tax on the said invoice. Therefore, we find that so far as the payment of shipping charges to Hanjin Shipping India Pvt. Ltd. was rightly construed by the CIT(A) and also that no tax need to be deducted at source. With regard to Maersk Line India Pvt. Ltd., the CIT(A) noted that similar payment for shipping charges found to have been made to the shipping company during the previous year ending 31.03.2012. Thus we are of the view that CIT(A) rightly granted relief to the assessee in respect of the payment of shipping charges to those two companies namely Hanjin Shipping Co. Ltd. and Maersk Line India Pvt. Ltd.. Tribunal was right in so far as the payments made by the assessee to MSC Agencies Pvt. Ltd., Samudera Shipping Line Pvt. Ltd. and Overseas Container Line Ltd. There is no specific discussion by the CIT(A) while granting relief to the assessee. Therefore, to that extent we agree that the findings rendered by the learned Tribunal that the issue has to be reconsidered by the assessing officer afresh only in respect of those three companies as mentioned above. Appeal is partly allowed.
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