TMI Blog2011 (12) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... JUSTICE SIDDHARTH MRIDUL, A.K. SIKRI, JJ. For Appellant: Mr. N.P. Sahni, Advocate For Respondent: Ms. Shashi M. Kapila, Mr. Sushil Kumar, Mr. Pravesh Sharma, Advs. The respondent-assessee, which is a private limited company incorporated under the Indian Companies Act, 1956, is into the business of supplying chain management, logistics and freight forwarding that is related to movement of goods and cargo within India or outside by road, rail, air or ship. This involves activities of packing, loading/unloading, trucking, tenderization, customs clearance and other cargo handling functions at both ends, besides moving the goods by air or sea, where goods cross the international borders. The assessee is providing such services to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessing officer pertaining to earlier assessment years had been deleted and those orders were followed. Not accepting the order of CIT(A), revenue preferred appeal before the ITAT. The ITAT found that in respect of assessment years 2001-02 and 2003-04, similar appeal of the revenue had been dismissed holding that no such tax at source was deductible and the provisions of Section 40(a)(i) of the Act were not attracted. It was also found that in respect of those assessment orders, the revenue had preferred appeals before the High Court in the form of ITA Nos. 475/2009 and 751/2010 which were dismissed even by the High Court. Therefore, the Tribunal followed those orders and dismissed the appeal of the revenue even in respect of this assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t core issue was as to whether nature of expenses is such that it attracts the provisions of TDS. Her submission was that the payment raised was towards reimbursement of the expenses incurred by the parent company, namely, global management expenses and other expenses. When such payment was not chargeable to tax at all, the collecting machinery provision, whether Section 194J or Section 195, would not get triggered. According to her, there must be component of income chargeable to tax and only then the question of deduction of tax at source would arise in as much as tax at source is to be deducted on income and not on expenses. Global management expenses were reimbursement of cost and as per the decision in the case of Van Oord ACZ India (P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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