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2014 (7) TMI 418 - AT - Income TaxDisallowance of Freight and insurance charges paid to Shipping Companies u/s 40(a)(ia) - TDS u/s 194C / 195 – Held that:- The assessee has to show that the shipping companies to whom payments were made are not only non-residents, but also he has to show they were assessed u/s 172 of the Act - only if the assessee is able to prove the facts, then he will be relieved of from the liability to deduct tax at source from the payments made to them towards freight and insurance charges - the legal position will not change if the payments to the non-resident shipping companies are made through their Indian agents also - the assessee has furnished a certificate obtained from M/s MSC Agency (India ) Pvt Ltd, wherein it is stated that the concern is the General Agents of MSC Mediterraneal Shipping Company - this certificate was not considered by both the tax authorities - the fact relating to the assessment of shipping companies to whom or on behalf of whom the charges were paid by the assessee were not brought on record - the issue requires fresh examination at the end of the AO – thus, the order of the CIT(A) is set aside and the matter is to be remitted back to the AO for fresh adjudication – Decided in favour of revenue.
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