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2022 (2) TMI 519 - AT - Income TaxTDS u/s 195 - disallowance u/s.40(a)(i) for ship hiring charges and weather report expenses paid to the non residents - chargeability of tax under Section 172 - HELD THAT:- CIT(A) has categorically mentioned that Section 195 of the Act would apply only if payment is made which is chargeable under Income Tax Act 1961. AO has not given any reason as to why the chargeability of tax under Section 172 of the Act does not cover time charter of ships for which payment is made to non-resident. AO totally ignored the NOCs issued by Department allowing the ship for sailing in Indian Port as the payment is for time charter. The provisions of Section 172 of the Act has not at all indicated that there is any liability to pay tax on such receipts by the non-resident recipients. In this case, the charter ship for which payment was made to non-resident. As per the charging Section 172, no liability arises for payment of tax by the non- resident receiving payment for time charter. D.R. could not point out any discrepancy in the order of CIT(A). Therefore, the 1st issue raised in Revenue’s ground no.1 is dismissed. Disallowance to weather routing report from the non residents and payment made to them - CIT(A) has given a categorical finding that income received by the non-resident for giving weather routing report in the form of analysis of data in tabular form/graphical representation is not chargeable to tax under any Section of the Income Tax Act including various sub-sections of Section 9(1) of the Act. There is no need to interfere with the findings of the CIT(A). Hence this issue is also dismissed.
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